Bulls, bats and butterflies.
This set up on the Pound-Frank shows two bullish patterns with the exact same D point! The moves share their A, C and D coordinates. GBP is likely to decline until this level; it has reached this price before but was rejected as you can see by the vast wick (which actually landed at the exact same level as the wick of 2011l take a look back). If price closes at our entry, prior wicks aside, it will be a new low for the pair. At this level, price is very likely to be oversold and we will see a bounce due to the new lows.
As the patterns share their A and D points, it is very easy to set up the TP and stop loss levels.
Take profit at the usual 61.8%; stop-losses set at a 3:1 risk- little over 120 pips below the X point. We may see some spikes as price approaches the level of support at the previous wick, thus a forgiving stop loss is necessary.
Bat ratios
B: 0.382-0.5
C: 0.382-0.886
D: 1.618-2.618
xD: 0.886
Butterfly ratios
B: 0.786
C: 0.382-0.886
D: 1.618-2.24
xD: 1.272
As the patterns share their A and D points, it is very easy to set up the TP and stop loss levels.
Take profit at the usual 61.8%; stop-losses set at a 3:1 risk- little over 120 pips below the X point. We may see some spikes as price approaches the level of support at the previous wick, thus a forgiving stop loss is necessary.
Bat ratios
B: 0.382-0.5
C: 0.382-0.886
D: 1.618-2.618
xD: 0.886
Butterfly ratios
B: 0.786
C: 0.382-0.886
D: 1.618-2.24
xD: 1.272
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.