Monday, 26 October 2009 20:22

Butterfly Pattern

Written by  MyFxCentral Team
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1. Usually occurs near price extremes.
2. Completion of AB=CD is usually extreme (1.27 or 1.618).
3. AB=<CD.
4. Wait for candle setup before entering.
5. Point A is the highest/lowest point in the pattern.
6. Point C can not exceed point A.
7. In a bullish pattern point D is the lowest. In a Bearish pattern point D is the highest.
8. Proper SL is crucial.

Last modified on Wednesday, 13 January 2010 00:31
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