Alexander_Nikitin
Panjang

Butterfly Pattern Completed

FX:EURUSD   Fx Euro/Dolar U.S.
Butterfly Advanced             formation
Tools:
*Fibonacci retracements (38.2% and 78.6%)
*Fibonacci extension (127.2%)
Timeframes:
*The Butterfly Advanced             formation was originally designed as a swing trading strategy. But it also works on lower timeframes.
Tactics:
*Seek to identify 4 market moves and 3 major Fibonacci zones. The combination of these moves forms the points (X, A, B, C, D) that fulfill the formation.
Rules of engagement: Criteria 1
The Butterfly Advanced             formation starts with a market movement/impulse leg that establishes our X and A points.
Once X and A points have been identified, we then look for our first criteria.
Criteria 1: The market forms the B completion point by fulfilling at least a 78.6% retracement of the XA leg.
Note: AB move remains valid as long as there is at least a 78.6% retracement of XA and that it does not extend past X. Only candlewick is calculated here. Candle close is not important.
Rules of engagement: Criteria 2
If criteria 1 has been met, then look for criteria 2.
Criteria 2: The market forms the C completion point by fulfilling at least a 38.2% retracement of the AB.
Note: BC             move remains valid as long as there is at least a 38.2% retracement of AB and that it does not extend past A. Only candlewick is calculated here. Candle close is not important.
Rules of engagement: Criteria 3
If criteria 1 and 2 have been met, then look for criteria 3.
Criteria 3: The market forms the D completion (entry point) by fulfilling a 127.2%extension of AB.
Note: D point always extends past X.
Trade management: Entry, stops & targets.
Entry: Limit order is placed at D completion point.
Target 1: 38.2% retracement of AD leg. When attained half of the position closes & stop moves to breakeven.
Target 2: 61.8% retracements of AD leg.
Stop placement: As the entry is beyond X in this pattern then stop is 2*ATR +/- the D or 1 to 1 measured distance to the first target.
Komen: A remarkable thing about butterflies and gartlies. Due to their 1.272AB completion point if they work there's ALWAYS a potential cypher pattern setting up back to back!! ^)
Komen: Of course, the previous comment is true if the C-point doesn't have a candle close past 0.618AB
This pattern was found by the MPS-5.2 pattern recognition software: https://goo.gl/viM3Ya

I am hosting a webinar on 21 Oct: http://ps-software.net/webinar-registration/

My Youtube channel: https://www.youtube.com/user/alexniquitos?sub_confirmation=1
i like this pattern, potentially a run up to 1.07 in the cards
Balas
Still trying to learn the cypher pattern, this was informative. If you have any tips or links on spotting the pattern, would be much appreciated :)
Balas
@Mustapha87, Carefully read the descriptions to my ideas. I explain the patterns in details there.
+1 Balas
wonderful
Balas
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