Potential Butterfly Pattern

Potential Butterfly pattern could extend further
Warnings: Wide range bars completing D leg

Validity: Completion point near previous gap my experience closed gaps act as support / resistance zones. Market has been in a steady uptrend.


Warnings:

• Look for wide range bars completing the D leg (could extend further
  
• Market has been in a strong uptrend (keep contract size small)
  
• If your trading using nadex as broker be aware of the time the pattern forms you want to have enough time to reach targets
  

Warnings:

• Look for wide range bars completing the D leg (could extend further)
  
• Market has been in a strong uptrend (keep contract size small)
  
• If your trading using nadex as broker be aware of the time the pattern forms you want to have enough time to reach targets
  

Trade active:

Aggressive traders enter at 414 and adjust fib ratios / targets accordingly

Comment:

Trade entered at 1.618 extension happy trading

Comment:

Target 1 reached lower your stops to break-even and continue on a risk free trade

Trade closed: target reached

Comment:

If you still have contracts going sell 90% of them. Then let the rest run with a break even stop loss, for the potential of higher profits. The market has a steady consistent uptrend.