Butterfly hunters!
Is this a giant butterfly forming on the July 08 - October 09 EUR/USD daily?
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Butterfly hunters!
Is this a giant butterfly forming on the July 08 - October 09 EUR/USD daily?
If we take this view of a bullish butterfly shown in the chart of Novellus below then (at the moment) we are missing b-c and going straight from C-D but so far it is has met the fibs of a 61.8% retracement of the leg from mid July 1.61 ish down to 1.23 and has also done a 78% retracement of the leg from 1.23 - 1.48 and hence so far is in line perfectly with only the last week not exactly playing the tune to the textbook.
in my chart I've drawn in dotted orange how the butterfly might look. ab projects 1.618% at 1.16 and BC projects 1.27% at 1.17 so around there would be the PTZ and the buy zone I suppose. Someone check my maths.
Also note ananda77 that technically speaking the theory only suggests the final point D as a valid buy signal and until then the pattern hasnt played out although other patterns have eg arco's bat. I'm not sure if a butterfly can survive the onslaught of a bat
Hi Peat
If we get a turn now, the BAT is still a possibility
when the X is taken from the lower point circa 28/10.
(Here's the old chart, and if we take the lower point the
886 is still pretty close to the current price)
rgds - arco
I've updated my original post with different projections and comments on posts that came afterwards.
But no I do not have prescience :cool:
noticed a three drives pattern down since 21:00 NZT last night and then a bullish gartley so laid into it with a very large trade for me (and a smaller one for the bigger pattern) and it came through pretty quick.
the most certain part of the gartley is the bit from 78% retracment back to the 38%
i reckon there is some serious overhead resisitance on euro at 1.39
? shaping upfor a short