Above you can see a very only-shaped butterfly ; price isn't exactly flowing from each co-ordinate to the next but the ratios fit the bill, so it's a butterfly . The reason I am at least considering taking this trade is the level of support- you can see in the update below that price is at a key level of weekly support/resistance . Furthermore, the daily trend line has been broken (before price subsequently dropped after the NZD government announcement). Bearish in mind that price goes through cycles of trending, then consolidation before making new trend, the false break of the daily trend line could be a sign of the beginning of a consolidating market for this pair. And I don't have to tell you which types of markets harmonic patterns work best in!
Butterfly ratios:
X:B = 78.6%
A:C = 38.2:88.6%
B:D = 1.618-2.24%
X:D = 127.2%
Butterfly ratios:
X:B = 78.6%
A:C = 38.2:88.6%
B:D = 1.618-2.24%
X:D = 127.2%
Kommentera:
Here you can clearly see the importance of the level price is approaching!
