Textbook Butterfly BUY on CHFJPY

FX:CHFJPY   Swiss Franc / Japanese Yen
139 3
An example of a textbook Butterfly BUY.
yes, it's over now. but to answer your question: after the pinbar was complete, right at 105.12/20, was 1 possible entry. another way to find an entry is to drop down to M5 or M3 or M1 and look for reversal patterns on these shorter TFs and enter earlier, that is, before the pinbar is confirmed on M15.

BUT, and this is really super important (i used to get burned all the time because i wasn't paying attention to this): this kind of patterns also fails quite often so the question really becomes, when is the pattern really valid? this one here is really exceptional in how textbook it is. and it immediately becomes active. most of the time, you don't see them activate so quickly.

there are many books talking about when it's a valid or when it's an invalid pattern. but in my experience, if the pattern completes (D point) at a clear S/R (support/resistance) point, then i feel much more assured that the pattern will be a valid one. of course, if S/R doesn't hold, then the pattern might either become a crab or just fail. the point is, if you look at such patterns in the past that completed where we had no significant S/R at all (K-area, agreement zone, major (as in long TF pivots), previous S/R on long TFs where it has been clear already that price bounced and couldn't break that S/R), then these patterns usually do not become valid and fail.

but where there is a significant previous S/R, this kind of pattern usually shows a higher probability of becoming valid. this is why i only trade the latter, and tend to be very cautious with the patterns that don't complete a major significant S/R levels.

hope this helps.
AncientM isomorph
Sorry to reply late. Thanks for your explanation. I also look for S/R levels to identify the trend and possible pullback.
So where we were suppose to buy ? At D? But that is over right?
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