Harmonic Trading 104 (The Butterfly Pattern )

As we begin to learn about the Butterfly Pattern.

I would like to say that it is not easy. And will take some time to fully comprehend the various Fibonacci rations that makes up each Harmonic pattern.*

If you are an average Joe trader such as myself. I suggest that you find a good Harmonics indicator to help with identifying these patterns in the live market. (And connect with more experienced Harmonic traders to help you on your journey.)*

Never trade with out a stop and use good money management.

So Lets Get Started!!!!


The Butterfly Pattern


The Butterfly is considered a reversal pattern. Especially when found at significant tops (Highs) and Bottoms (Lows)


An ideal Butterfly Pattern, has a Fibonacci ratio of a 0.786 retracement of the XA leg as the B point.

That forms an AB=CD pattern of an extended C.D. leg that is 1.27 or 1.618 of the AB leg.

D. will be below X. in a Bullish Butterfly and D. will be above X. in a Bearish Butterfly.

D. is the Bread and Butter point and projection level with the greatest profit potential if the pattern holds true.* Especially when found at significant tops (Highs) and Bottoms (Lows).





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GFT-Butterfly-Bullish.pdf
GFT-Butterfly-Bearish.pdf