StevenH
Short

My Butterfly pattern rules GBPUSD

FX:GBPUSD   British Pound/U.S. Dollar
Here on the GBPUSD             im getting closer to my short orders being filled and the butterfly pattern completing. stops for me go just above the 1.414 ext and target is the .382 retrace of the A to D-leg.

Butterfly rules:

1= Atleast a .786 retrace of the X to A- leg but cannot break X.

2= Atleast a .382 retrace of the A to B-leg and can go past .382 just cannot break A.

3=Pattern completion for the butterfly pattern is a .127 ext of the A to B-leg. Thats were i place my orders.

If you have any questions about this pattern or if you would like me to post more educational content about advanced patterns just leave me a comment in the comment section and i will help you with it any way that i can. Thanks for checking out my idea and Good luck on all your trades!!
HI Stevo. First, good pickup. I didn't notice it until I saw your post. This butterfly if completed would lie inside a minor SR Zone. Could be a good trade. But, and I hope you don't mind me posting a correction here, your butterfly ratios are a bit off. And the confusion is understandable. The 1.272 D point is not the AB extension. Your D point will fall somewhat short leaving you with a rather large PRZ. The 1.272 is measured by the extension of the XA leg retracement. Do that and you'll see the D point is a bit higher up and will give a much tighter PRZ. And I'm not quite clear how you got your PRZ. The CD leg must be between 1.618 and 2.24 of the BC extensions. Here's what the butterfly on this pair should look like.
snapshot
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EverythingForex PRO EverythingForex
a year ago
In additon, by the time prices do get to the D point and possibly into the PRZ, the RSI should show oversold. So looks like a possibly a pretty solid trade!
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StevenH
a year ago
Hi my friend, I dont mind at all, and i appreciate your comment and correction. My reasoning for trading the butterfly this way is because i have tested this pattern many times on many different pairs and played with the ratios just a bit. With that testing i found that the way i have posted this is the most profitable for my trading strategy and plan. I should have clarified that in the post of this idea. Sorry i did not, I have never tried the butterfly pattern with an extension from X down to A. here is a link to one way to trade the butterfly pattern from harmonictrader.com http://www.harmonictrader.com/price_patternsbfly.htm , this is were i started and then messed with the ratios on back and forward testing until i was satisfied with my maximum drawdown and profit potential using this pattern.

Thanks for your comment and best of luck to you sir on your trades!
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EverythingForex PRO StevenH
a year ago
Ok. Np. If you have backtested and tweaked the ratios to suit your trading plan, then that's fine. Many have done that and come up with the so-called "non-classical" harmonic patterns like Anti Alt Bats, A Bats, Anti Cyphers, Black Swan, etc., etc. Could you tell me what success percentage you found you got backtesting your ratios? If it works great, the maybe you should name it as a new pattern! Something like "Stevo's High Fly Butterfly"! LOL! Just kidding, bro.

I just tend to stick with the tried and true classical way defined by Mr. Carney though I know and do study all the new non-classical ones as well. All are just derivations of the classical patterns and none have any significantly improved success percentages over the standard classical ones anyway.

But, good luck with your pattern. I'll probably take this trade if/when it hits but will do it using the traditional ratios.

Keep 'em coming!
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StevenH EverythingForex
a year ago
I may have to do that lol, and thanks again for commenting!! I have my orders in for this trade and hope it ends up being successful for us both!! Good luck!
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dangap
a year ago
Looking at the same area but measured it out as a bat due to starting my X-A leg at the previous hi at 1.5787ish, which also lines up for a D leg completion of your butterfly, good luck.
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StevenH dangap
a year ago
Nice one!! That bat pattern is going to be a pretty good trade setup. Should have a very nice risk/reward. Good luck to you aswell sir!! Thanks for the comment!
+1 Reply
dangap StevenH
a year ago
It's good to see some confluence between the two patterns regarding the D leg completion. Also in the bat side of things we get a nice AB=CD.
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