EURAUD (Bearish Butterfly Pattern) -4h Chart
Bearish Butterfly Pattern
- A-B must touch 0.786, but cannot exceed X
- B-C touches 0.382, but sometimes goes further (does not exceed A)
- ABCD formation. D has to reach outside X and touch 1.272 or 1.618 (on this case it went a little higher because of Euro news)
- TP 0.382 TP2 0.618 (Fibo A-D)
X to D distance is 1.618 (1.618 golden ratio!)
X to B distance is 0.758 (around 0.786!)
A to C distance is 0.862 (around 0.886 retracement)
B to D distance is 2.317 (around major retracement 2.618)
Good Trading
- A-B must touch 0.786, but cannot exceed X
- B-C touches 0.382, but sometimes goes further (does not exceed A)
- ABCD formation. D has to reach outside X and touch 1.272 or 1.618 (on this case it went a little higher because of Euro news)
- TP 0.382 TP2 0.618 (Fibo A-D)
X to D distance is 1.618 (1.618 golden ratio!)
X to B distance is 0.758 (around 0.786!)
A to C distance is 0.862 (around 0.886 retracement)
B to D distance is 2.317 (around major retracement 2.618)
Good Trading
Trade closed: target reached:
Third TP has been reached
