CD and finally target 3, which is the projected XA distance from the PRZ level. In the above example, we entered.272 Fibonacci extension, but we can already see point D extend.573 Fibonacci extension which is still inside the.272.618 range that validates the bullish Butterfly harmonic pattern. CD leg can retrace up.6 of XA leg. Thats still a great entry level. This ability to consistently repeat makes the Forex harmonic patterns so attractive for our team. In any case, price reversed near point D to reach all the three objectives of target 1 which.8 of CD, target 2, the 127.2 extension of CD and finally target 3, the XA projected distance from the PRZ level. And, finally, the C point must be within the range.382-0.886 retracement.
In the figure below you can see an actual sell trade example, using the Bearish Butterfly Forex Harmonic Pattern. Best Stochastic Trading Strategy- Easy 6 Step Strategy might be more suitable for your own needs. Please Leave a comment below if you have any questions about this strategy! However we recommend that you learn the patterns very well before you begin using a scanner or dashboard. We want to close the second part of our trade once we hit the.618 Fibonacci retracement of the CD leg, or you can even aim for a retest of point A, but that can be your next target once you become more experienced with. Characteristics of Harmonic Pattern Indicator, platform: Metatrader4, currency pairs: Any. The, amazing Harmonic Pattern Trading Strategy will give you a whole new understanding of the price action. The best indicator ive seen last 2 years. Here, we notice that AB retraced.7 (almost close to 50) of XA leg. CD can retrace up.618.618 extension. To the Butterfly pattern the B point, it must possess precise.6 retracement of the XA swing. Download 1-2-3 Pattern Indicator, submit your review, check this box to confirm you are human.