The Butterfly pattern , is a harmonic pattern discovered by Bryce Gilmore using his Wave trader software program.
The pattern structure was further refined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998.
The Butterfly pattern must include an AB=CD pattern to be a valid signal. In general, the AB=CD Pattern will possess an extended CD leg that is 127.2% or 161.8% of the AB leg.
Due to the hectic day on EU I am late in publishing this pattern. However, the Butterfly pattern much like the Crab is a reversal pattern and as such we should expect price to at the very least break below the pattern and potentially hit TP3 before the reversal concludes.