- **Bearish Butterfly Pattern**:
- A technical analysis pattern seen in financial markets.
- Signals a potential reversal from an uptrend to a downtrend.
- **Structure**:
- Consists of four price swings: XA, AB, BC, and CD.
- Resembles the shape of a butterfly.
- **Key Characteristics**:
- AB leg retraces a portion of XA.
- BC leg extends beyond XA.
- CD leg retraces a portion of BC.
- **Trading Strategy**:
- Consider short positions after the completion of the pattern.
- Set stop loss above the pattern's high.
- Set profit targets at key support levels or Fibonacci extensions.
- **Caution**:
- Analyze other indicators and market context.
- Implement risk management strategies.
- A technical analysis pattern seen in financial markets.
- Signals a potential reversal from an uptrend to a downtrend.
- **Structure**:
- Consists of four price swings: XA, AB, BC, and CD.
- Resembles the shape of a butterfly.
- **Key Characteristics**:
- AB leg retraces a portion of XA.
- BC leg extends beyond XA.
- CD leg retraces a portion of BC.
- **Trading Strategy**:
- Consider short positions after the completion of the pattern.
- Set stop loss above the pattern's high.
- Set profit targets at key support levels or Fibonacci extensions.
- **Caution**:
- Analyze other indicators and market context.
- Implement risk management strategies.