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Originally Posted by polo0258
Kamyar:
sorry for all this questions and thank you again for your help.
Bullish Butterfly Pattern
1.- B = retracement of XA = 0.786
2.- C = retracement of AB = 0.382
3.- D = retracement of BC = 1.618
now XA could give me retracement to D also?, is it XA (1.27-1.618) = BC (1.618-2.618) in order to get D?
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lokk polo we have some obligation for patterns
for example in a butterfly pattern two condition must be fulfilled
1-the point D must be below(for bullisg) and above(for bearish)
2-the AB leg should be equal(not exactly with a bit difrenece is acceptabel it depends on your timefram) to CD
in the pattern you posted the point D is not below the X(besides it retraces 1.618 but the two condition not fulfilld) so it can fail and changs to another pattern.
for recognizing a pattern we need 4 established point(X,A,B,C)In this pattern in my opinion the point C has not been established yeT
take a look at the attached table.it helps u incredibely