When there is a confluence of patterns that point in the same direction, there's probably a good chance that SOMETHING will happen around that point. And we have that possibly happening here soon.
On my chart, I've identified TWO patterns that have confluence: a bearish butterfly and a beraish Gartley pattern. Both patterns D points are very close to one another. In fact, the PRZ of the Gartley would encompass the D point of the butterfly. In addtion, both these patrern's PRZ lie within a SR Zone adding to the confluence.
Obviously, due to the Gartley's fib ratios, this SR Zone and the D points of both patterns are also at/near the 78.6% retrace of the prior wave down. I have projected should prices proceed upwards towards where these patterns would become complete, the RSI at that point should also be somewhere within oversold region as well.
Now, the 3rd beairsh pattern doesn't really have anything to do with the butterfly and the Gartley but it does give a preview of where prices may be headed eventually. And of course, it encompasses both the Gartley and the Butterfly. In other words, the Gartley and the butterfly represent price action within the bearish bat pattern.
Just as a thought exercise and nothing more for now, I have also drawn in a bullish Cyoher. Of course, this cypher does not exist at all for now as there is not even a C point established yet (it's C point would be somewhere near the D points of the Gartely and butterfly).. But I have shown it here ONLY to give some thought as to how far prices MIGHT fall after reaching the 2 bearish patterns. If so, then the cypher actually would complete at/near the lower channel trend line. If so, this would further lend credence to the validity of that trend line. Just a thought.....
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Going good...!
Price is trying to respect the Bearish Butterfly
EverythingForex
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Survived the negative earnings new release earlier. Now hoping it completes the patterns soon....I'm itching for some action! But for now, just being patient and sitting on my hands on this one......
Red_Eagle0
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All Right...!
HashamARehman
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hahaha,,, itna complicated hai chart lol
KlejdiCuni
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Fantastic analysis! Please can you tell me which are your criteria for the "B" point of Bat & Butterfly Pattern ? Thank you.
EverythingForex
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I use the "Classic Rules" for advanced patterns as defined by Scott Carney. The B point for Bats is between 38.2 and 50%. The B point for for butterflys is minimum .786 retrace of the XA leg.
Hope my analysis helps you in your trading!
KlejdiCuni
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Thank you. For the moment I'm reading "Trade What You See" by Larry Pesavento and Scott Carney is the next on my list.
EverythingForex
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"Trade What You See" is an excellent book. But if you really want to learn harmonic trading, you should start with the fundamentals. Scott Carney's (sometimes referred to as the "father of modern harmonics") books is a great place to start. Be sure to read:
1. The Harmonic Trader
2. Harmonic Trading Vol. I and Vol II
Price is trying to respect the Bearish Butterfly