FX:EURUSD Euro Fx/U.S. Dollar
Spotted an almost perfect Pattern forming on the 4-hour chart of EUR/USD . There are several features on this setup that makes this pattern almost perfect. The 78.6% level of the XA leg is in almost perfect confluence with the potential retracment of 127.2% Fibonacci level of the BC leg and the perfect pattern also falls right on top of this level as well. For more details of this particular setup and my personal trade plan, please read my blog post found here: http://simplychartpatterns.wordpress.com/2012/11/18/bearish-gartley-forming-on-eurusd-4-hour-chart/
A good Butterfly formation would require that point B retraces to the 78.6% Fibonacci retracement level of XA leg. So it is always possible that the current AD segment could be the new AB of the Butterfly. But then if that happens, it still needs to move down to form the new BC leg of the Butterfly. So either way, whether it is Point D of the Gartley or Point B of the Butterfly, I will still be anticipating a move down at the current Point D.