The butterfly pattern is made up of four legs marked X-A, A-B, B-C, and C-D. It helps traders determine when a current price move is probably getting to its end. This means traders can enter the market as the price changes direction. How to identify the Butterfly pattern?
What is a butterfly market strategy?
The butterfly market strategy is part of the Harmonic trading patterns. Our team at Trading Strategy Guides has developed the most comprehensive step-by-step guide into Harmonic trading. We highly advise you to first start reading the introduction into the harmonic patterns here: Harmonic Pattern Trading Strategy- Easy Step By Step Guide.
How to set a butterfly profit target?
There are many ways to manage your trade and set the butterfly profit target. But, the ideal target for the Butterfly harmonic is to implement a multiple take profit strategy. For both the bearish butterfly pattern and bullish butterfly pattern, we’re going to take the first partial profit once we hit starting point A.
What is butterfly harmonic trading strategy?
The Butterfly Harmonic pattern trading strategy will teach you how to trade butterfly harmonic. You can start profit right away from this new electrifying approach to technical analysis. The butterfly market strategy is part of the Harmonic trading patterns.
