KVE
Short

USD/CHF: Butterfly in case the AB=CD's fail?

FX:USDCHF   U.S. Dollar/Swiss Franc
49 0 3
Previous idea based on the possible AB=CD patterns that might have completed right now left me wondering where PA might go after a possible retracement based on these AB=CD's or if the AB=CD trade setup fails...

I already mentioned a possible butterfly pattern and this idea has a setup based on that possible butterfly if it ever comes to completion!

The main factor in the butterfly PRZ is the 1.27 XA projection so I will be looking to go short just below that level.
The min. requirement for the butterfly is the 1.618 projection of BC             , so if PA reverses there I will miss this one, however the R/R wasn't ideal with that low an entry since I want to keep my SL above the 1.41 ext. of XA.
Also: This butterfly can only occur if we get passed the resistance level based on the January high. If we get above that high point where alot of SL should be situated we could have a significant spike up if these SL levels are triggered which makes me put my entry and SL high enough!
On the other hand: if the January high level breaks it could turn into support, limiting the down retracement based on the butterfly ... We can only wait and see what happens and react accordingly, possibly changing the gameplan based on PA!

3 targets:
- TP1: 38.2% of CD (20-30%) >> partial profits, SL to BE!
- TP2: 61.8% of CD (50-60%) >> main target, most profits booked, shift SL.
- TP3: 100% of CD (10-20%) >> extended target (some sources even suggest the 127.2% retracement!)

I might consider a quick and small target at the January high level in case it turns into support, thus enabling me to leave my SL and limit my risk all in one go...
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