Beautiful Butterfly and AB=CD harmonic resistance

4 apr 2018

This is a almost perfect example of a perfect butterfly pattern with further validation from an AB=CD helping to reinforce the validity if this set up, this indicates strong resistance at these levels (blue box's are potential reversal zones) and an reversal signal to the downside i would look to sell this pair and take profits at the 0.382 retracement drawn from the extreme points of the pattern (not drawn on this one)

Also the butterfly pattern has a ridiculously high accuracy rate and were looking and a near perfect alignment of fib ratios where the price has prity much respected these levels at the highes blue box (PRZ)

4 apr 2018

Nota

Before i did enter i would await for either the 1.27 to be completely tested or a strong bearish candle before entering and also would wait for the candle to finish before judging the price

4 apr 2018

Nota

Unfortunately this trade would not have even been entered based of the butterfly prz as there was not any strong move from the butterfly prz, there was extreme price expansion which does happen from time to time which invalidates the PRZ

4 apr 2018

Trade attivo

Allthough another trade emerged as the DEEP crab pattern and you did had an opportunity to enter the market, as the price still came just under the 0.886 level the numbers did align for a deep crab pattern and the entry would have been from the first move down from the top of the prz, you would have awaited the candle to close and then that would been the trigger to enter. the stop would have been placed APPROXIMATELY 20 pips from the terminal price bar (the highest point befor it went down)

4 apr 2018

Trade chiuso: obiettivo raggiunto

The target would have been 0.382 and the 0.786 of the retrcaement drawn from the extreme points of the pattern as you can see the first TP would have been met and the 1st half of the position would have exited and then the stop loss would have been moved to just below the entry level, a trade would have been still in play with the remainng half of the position of the table if the price brakes the tredn line exit the remaining half