Can anyone give there opinion on this pattern? i think i spotted one but im not a 100% sure. i only left the Fib Extension on graph bc it would be to crowded and you wouldnt be able to read it.
https://www.tradingview.com/x/U3f21O23/
i would Sell at point D
Be careful bro. I would say point B Has formed to deep. Your call but at the end of the day
What do you mean to deep ??? I’m very new when these patterns
So im going of memory here. But normally crab n butterfly patterns point B retraces no deeper than 50% of XA. 61.8 max. Here its 80% thats deep. Doesnt mean the pattern not valid. Just means I would personally look for a confirmation before entering a trade. Now this is my opinion but I see a decending chanel breakout long so wouldn’t enter a short trade. But thats just my view. I’m currently at work but when i get home I’ll post you an excellent harmonic cheat sheet bro
Bob
Thanks for THT sheet. It seems hard to find a real good video online THT shows everything. But tht sheet looks very good
Trading w/ harmonics is less about pattern recognition, and more about environment recognition. Thousands of these “patterns” form every single day, on every single traded instrument in the markets. Yet, some work the way they should, and some don’t.
Learning to read the price action, and applying that before you look for a harmonic will increase the odds of the trade working out for you.
Hi FOREXunlimited
I’m fairly new to trading, on and off for 6 months.
I’ve had a few accounts and like any other newbie I’m struggling to make a profit.
After looking at the posts you seem very knowledgable and I was wondering if I could ask you a few questions?
No worries if you’re too busy!
Many Thanks
Sup? Hit me up on skype if need be.
Jake
Yea if that’s okay, I’ll make a Skype account tonight, drop me a quick email with your details if possible!
Thanks again
My skype details are underneath my avatar. Just click that.
The Butterfly Pattern The general extension structure of the Butterfly pattern was discovered by Bryce Gilmore. However, the exact alignment of ratios was defined in Scott Carney’s 1998 book, “The Harmonic Trader.” This has become the industry standard for the structure. Scott’s ideal Butterfly Pattern requires specific Fibonacci ratios to validate the structure. These measurements include a mandatory 0.786 retracement of the XA leg at the B point, which defines a more precise Potential Reversal Zone (PRZ) and more significant trading opportunities. Also, the Butterfly pattern must include an AB=CD pattern to be a valid signal. Frequently, the AB=CD pattern will possess an extended CD leg that is 1.27 or 1.618 of the AB leg. Although this is an important requirement for a valid trade signal, the most critical number in the pattern is the 1.27 XA leg. The XA calculation is usually complemented by an extreme (2.00, 2.24, 2.618) BC projection. These numbers create a specific Potential Reversal Zone (PRZ) that can yield powerful reversals, especially when the pattern is in all-time (new highs/new lows) price levels.
This is very true
Thanks for clarifying!