chrystael

BULLISH BUTTERFLY PATTERN BEFORE NFP

Long
FX:EURUSD   Euro / U.S. Dollar
HOW I TRADED IT

usually between 1.272% and 1.618% extensions.

But here is how i went with it after i met it later

usual ab=cd pattern but an extension here
usual 1.272% extension as XA leg
usual 78.6% or 88.6% retracement as AB leg for C
(note: BC could be any retracement between 38.2% - 88.6%)
usual 1.618% extension AB leg

then

CB extension 200%. this just confirm likely retracement for D

1.272% extension of CD leg of ab=cd patten also as confirmation of D retracement

any other extension of retracement within C to D leg not greater than 2.618%

now:

confirmation of entry are:

1. within 1.272% and 1.414% of XA extension
2. 1.618% extension of AB leg
3. not greater than 2.618% extension of BC leg
4. 1.272% extension of CD leg of ab=cd pattern
5. double or triple bottom with RSI divergence

here i also waited for a double or triple with RSI divergence bottom in a lower time frame for confirmation.

risk to ratio of 1:2.5

bam! got the cash handy. before NFP.

Comments

the chart is on 5mins chart showing the triple bottoms and RSI divergence. this is the very 15mins chart where i actually drew the pattern and discovered it.
Reply
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