USDCHF - Bearish Butterfly..

FX:USDCHF   U.S. Dollar/Swiss Franc
This is the most beautiful and perfect butterfly I have ever seen. The Fib Ratios of the pattern fill the criteria so perfectly with a really good risk to reward ratio, I am giving into my temptation of catching the butterfly ....

Rules of Engagement.....

Shorting at point 'D'.....
With stops above 'D'...
Target 1 - At 38% reatracement of 'CD' which beautifully falls on the previous structure resistance ....

With stops moved to Point 'D".....

Target 2 - At 60% retracement of 'CD' which also falls on the intermediate resistance levels i.e Point 'B'....

I'm so sorry but I thought Butterfly is

B should be at 78.6 of XA
D can be 127% or 162% of XA
and 162% or 2.618% of BC for have smaller price cluster.
Yeah...But I usually keep a tolerance between 61.8% to 78%....It has worked before, but you could see a crab if it extends further.... I would short after the confirmation....
+1 Reply
Just curious who's criteria you are using in this pattern.
Scott Carney, my personal favorite, requires an A to B
of .786. But, perhaps there is some other "expert" who
has a more liberal interpretation and was wondering
who that might be ?
Thanks for your thoughts !!!!
Wishing you lots of pips in your pocket, too ~~~~~~
pavan15589 dojitrader
Most of the patterns I post, all meet the standard Fib Ratios, but I did see a lot of patterns with tolerances and other criteria when I was trying to understand them.. And if this isn't right, then I would surely accept it cos I am still new to this and your charts are pretty awesome....Probably it will extend into a crab....
Thank you for your feedback.... :-)
pavan15589 dojitrader
And hey...!! As I was hoping, RSI has gone oversold on Daily and 4 hrs....
pavan15589 pavan15589
Sorry...Overbought I mean...
najibmulik dojitrader
You are not only Mr. Perfect, But also Mr. Polite....
pavan15589 najibmulik
:-) Hey....Thank You for that.... Loads of success to you....:-)
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