GBPUSD - Butterfly Pattern after Bat Pattern on H1 Chart
The bat pattern in yellow has already completed and reacted and reached TP1 at around 1.2446, but hasn't hit TP2 indicated by the purple line, cheers for those who have already locked in some profits.
However, I spotted a possible butterfly pattern forming soon around 1.2465.
At the same time, RSI is on its way to overbought level.
R:R at 1.7 (TP1) and 3 (TP2).
What I'm trying to convey is that the bat pattern might not hit TP2 due to traders spotting another pattern (butterfly pattern in this case).
As such, there MIGHT be a reversal at PRZ for the butterfly pattern.
Always note that harmonic patterns may not be perfect all the time.
If you happen to spot such occurrence as well, you will probably adjust TP2 to the PRZ instead, prepare for a short position if price really reacts to the next pattern.
Some profits is still better than no profits. =)
I will update if pattern completes.
However, I spotted a possible butterfly pattern forming soon around 1.2465.
At the same time, RSI is on its way to overbought level.
R:R at 1.7 (TP1) and 3 (TP2).
What I'm trying to convey is that the bat pattern might not hit TP2 due to traders spotting another pattern (butterfly pattern in this case).
As such, there MIGHT be a reversal at PRZ for the butterfly pattern.
Always note that harmonic patterns may not be perfect all the time.
If you happen to spot such occurrence as well, you will probably adjust TP2 to the PRZ instead, prepare for a short position if price really reacts to the next pattern.
Some profits is still better than no profits. =)
I will update if pattern completes.
Hard selling after that, hour candle closed in PRZ, I am still on track for the butterfly pattern.