Although the pattern structure is not as clean as other published patterns, the percentage change (fib) tool levels give confluence to this pattern. See the comments below for TP2 and further details on the confluence of PCT levels.
Comment:
TP2
Comment:
Confluent PCT levels. The Butterfly pattern confirms a trend reversal, expectation is that price will drop below point A of the pattern. Using the well known Fibonacci levels and their reciprocals:-
88.6% - 113%
78.6% - 127%
I would predict that price will reverse at the 78.6% before retesting the entry level at 127% to then continue down to TP2 and eventually below point A of the pattern.
88.6% - 113%
78.6% - 127%
I would predict that price will reverse at the 78.6% before retesting the entry level at 127% to then continue down to TP2 and eventually below point A of the pattern.
