moneymaking
Long

GBPNZD: Potential Butterfly Pattern

FX:GBPNZD   British Pound/New Zealand Dollar
There might be a potential bullish Butterfly pattern in GBPNZD             pair on 2 hour chart. Note that the D point completion is where we also get ratio confluence between 161.8% and 127.2% extension of XA leg. The D point completion is also between a really good support zone (marked by pink dashed lines). It's a very good risk to reward ratio trade.

Trade Setup:
1. Use your trade management for the lot size
2. Long at 127.2% extension of XA leg
3. Stops go 10 to 20 pips below the 138.2% extension level of XA leg
4. The 1st target is 38.2% retracement of AD leg. When 1st target reached, move stops to break even
5. The 2nd target is 61.8% retracement of AD leg

Please correct me if I have made any mistakes, by leaving a comment below. Thank You.

Trade safe, Enjoy!!
DonkeyTrades
2 years ago
maybe you can see how bad harmonic patterns perform. that is the reason I switched and graduated to ELLIOTT WAVE
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moneymaking DonkeyTrades
2 years ago
Hehe, yaa I realized it now :)
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moneymaking DonkeyTrades
2 years ago
Even the best setups can fail.
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Highcrunch moneymaking
2 years ago
I have been trading primaryily harmonic patterns (and a couple of other setups ) for years and it works great for me. To increase probability, its good to take into consideration higher timeframe analysis, price action at potential reversal zone that preferably align with strong support and resistance level. In the end I believe everyone should come to their own conclusion which strategies suit them best, be really good at it and trade consistently with it is. Even the best setup can fail as the market does whatever it wants. But with good money management and Risk/reward trades, there is no reason not to succeed.
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moneymaking Highcrunch
2 years ago
Hey highcrunch, you are absolutely correct. Thanks for the great feedback!!
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DonkeyTrades Highcrunch
2 years ago
lol
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