BULLISH BUTTERFLY PATTERN BEFORE NFP
HOW I TRADED IT
usually between 1.272% and 1.618% extensions.
But here is how i went with it after i met it later
usual ab=cd pattern but an extension here
usual 1.272% extension as XA leg
usual 78.6% or 88.6% retracement as AB leg for C
(note: BC could be any retracement between 38.2% - 88.6%)
usual 1.618% extension AB leg
then
CB extension 200%. this just confirm likely retracement for D
1.272% extension of CD leg of ab=cd patten also as confirmation of D retracement
any other extension of retracement within C to D leg not greater than 2.618%
now:
confirmation of entry are:
1. within 1.272% and 1.414% of XA extension
2. 1.618% extension of AB leg
3. not greater than 2.618% extension of BC leg
4. 1.272% extension of CD leg of ab=cd pattern
5. double or triple bottom with RSI divergence
here i also waited for a double or triple with RSI divergence bottom in a lower time frame for confirmation.
risk to ratio of 1:2.5
bam! got the cash handy. before NFP.
usually between 1.272% and 1.618% extensions.
But here is how i went with it after i met it later
usual ab=cd pattern but an extension here
usual 1.272% extension as XA leg
usual 78.6% or 88.6% retracement as AB leg for C
(note: BC could be any retracement between 38.2% - 88.6%)
usual 1.618% extension AB leg
then
CB extension 200%. this just confirm likely retracement for D
1.272% extension of CD leg of ab=cd patten also as confirmation of D retracement
any other extension of retracement within C to D leg not greater than 2.618%
now:
confirmation of entry are:
1. within 1.272% and 1.414% of XA extension
2. 1.618% extension of AB leg
3. not greater than 2.618% extension of BC leg
4. 1.272% extension of CD leg of ab=cd pattern
5. double or triple bottom with RSI divergence
here i also waited for a double or triple with RSI divergence bottom in a lower time frame for confirmation.
risk to ratio of 1:2.5
bam! got the cash handy. before NFP.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.