Description
⋅ Greetings fellow traders, today we are analyzing the EUR/JPY 4hr chart, looking at a potential Bearish Butterfly Pattern.
The pattern is in the process of completing the C to D leg, with a potential risk to reward of 1:4.
The measurements for a butterfly pattern are detailed below:
B: 0.786
C: 0.386 - 0.886
D: 1.618 - 2.240
X to D: 1.272
Will be looking to enter this trade with some more confirmations after the pattern is completed.
Please share your thoughts!
Comment
⋅ The pattern completed, so look for a reversal and several other confirmations. Beware of the volatility due to the North Korea situation.
Good luck!
Comment
⋅ Still holding at the D point, keep an eye out to see if a reversal pattern begins. Remember that a reversal candle shows strength when it closes.
The EUR has been quite strong for a while, so I recommend waiting for strong reversal triggers before going short on the EUR/JPY.