Short AUS200 by butterfly pattern

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Now, the Australian stock index is down on Monday, reminding me that the pattern may be formed. Now I will give you an analysis of how to look at this pattern and how to trade with it.

The butterfly has X A B and C D five points, enter the trade when these five points meet the fio ratio.The essence is form pattern recognition. Butterfly's B requires a 78.6% correction near the previous XA , and the B point in the figure is near 6028, which fits this ratio 78.6%. The point C cannot exceed AB, so the range is actually larger.The potential D points is determined by the ratio of the XA and BC.D is 1.272 or 1.618 times of XA, (in this case 1.618 times), while D point is between 1.618 and 2.618 times BC, now D is 2.24 times BC.

It can be said that BC's 2.24 times and XA's 1.618 times forms the potential reverse zone , which is near 6151

In this area, the confirmation of a candle signal is the icing on the cake and can be released.The usual signals are shooting stars, hanging necklines and so on

After short it , the target position of the short position is located near 38.2% of a-d, and 6064 of the figure

Thank you, good luck