Forex Trading Advanced Level Course
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    The Butterfly pattern

    The Butterfly

    Bryce Gilmore created the butterfly pattern; the perfect Butterfly pattern is defined by the .786 retracement of move AB concerning move XA. The Butterfly contains these characteristics: 1. Move AB should be the .786 retracement of move XA. 2. Move BC can be either a .382 or .886 retracement of move AB. 3. If the retracement of move BC is .382 of move AB, then CD should be a 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, CD should extend 2.618 of move BC. 4. CD should be 1.27 or 1.618 extension of move XA.