The Perfect Butterfly pattern is defined by a B point retracement of an exact 78.6% of the XA leg. Another distinctive aspect of the Perfect
Butterfly structure is a precise 1.618 BC leg that complements the completion of the 1.27 XA leg.
PRZ (Price Reversal Zone):
1.27 AB @ 168.
1.618 BC @ 168
1.27 XA @ 165
The price may test 165 or may turn at 168. So it is advisable to open positions at both levels.
The price may even test the extreme level in the PRZ at 156 which is 2.24 BC.
Hence the stop loss at 155.
I've linked my previously published analysis on the ETHUSD for you to track how the price followed and turned Fibonacci levels. Let's hope it continues to follow the pattern and reach D...
Butterfly structure is a precise 1.618 BC leg that complements the completion of the 1.27 XA leg.
PRZ (Price Reversal Zone):
1.27 AB @ 168.
1.618 BC @ 168
1.27 XA @ 165
The price may test 165 or may turn at 168. So it is advisable to open positions at both levels.
The price may even test the extreme level in the PRZ at 156 which is 2.24 BC.
Hence the stop loss at 155.
I've linked my previously published analysis on the ETHUSD for you to track how the price followed and turned Fibonacci levels. Let's hope it continues to follow the pattern and reach D...
