Lowe's Companies, Inc.
教学

Strategy: Butterfly Correction Pattern.

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The butterfly can appear as a corrective pattern in a trend.

When it does, it's a two leg correction. The second leg is a false breakout of the first.

Being a harmonic, the final leg (D leg) is always the strongest.

When the butterfly serves as a corrective pattern, strong follow through can come.

In the times this works, we usually see the next swing extend 2.20 of the full range of the two leg correction (B-D legs).

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