Hi, I was just going through your explanation on Butterfly pattern. However, I have a doubt which is "BC leg should be between 38.2% to 88.6% and should not exceed the length of point A" doesn't it make the pattern invalid ?
moneyflow_trader
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@Tron029, morning. The Trade has already occurred and target was hit
Tron029
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@moneyflow_trader, I know but the butterfly pattern legs what you have described is what I am wondering!
moneyflow_trader
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@Tron029, from my exp. I honestly try to work off the Triangles, and the range can be various depending on what time frame you're trading off . Take a look at the 4hr chart
moneyflow_trader
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@Tron029, and I also dont soley rely on the harmonic patterns. Its not an exact science to me. I keep the ranges in mind and respect to. Every triangle has an apex, you have to incorporate multiple techniques and strategies to get to your goal
moneyflow_trader
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@Tron029, another perfect example. I had C wave correct. I thought It would sell off from c wave or at least retest, but the higher time frame stuck like glue and kept rising to 4500
Tron029
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@moneyflow_trader, Its always good to look into higher time frame as the lower time frame has lot of market noise and we cannot decide.
moneyflow_trader
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@Tron029, if you soley rely on harmonic patterns and elliot waves, you're asking for trouble in these markets because the markets can change up on you, and price action can get manipulated but the money flow doesnt lie. here is another example of a harmonics pattern I saw. I actually got into the trade a day early, but yesterday price action got pumped up, because folks were selling out of their position once price got to 4500 area..
Tron029
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@moneyflow_trader, Thank you for your time and Explanation. I have my method of looking into things as well. I use triangles and pivots(depending on different time frames), Candles,Harmonic patterns, Ichimoku Cloud and soo on. My understanding on butterfly pattern would be BC leg should not exceed 88.6% of XA. So got kind of confused. Its good to know how different people have different method but the ultimate result is the same. Cheers.
moneyflow_trader
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@Tron029, you're welcome last thing... another example saw the triangles here. Try applying your method on this and see if you have any success. I have no position