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purplex
Nov 27, 2017 4:31 PM

Potential Butterfly Pattern Long

S&P 500SP

Description

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.
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