The Butterfly Pattern, Tutorial (Basic)

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The Butterfly pattern, is a harmonic pattern discovered by Bryce Gilmore using his Wave trader software program.

The pattern structure was further refined using specific Fibonacci levels by Scott Carney which he outlined in his book 'The Harmonic Trader', published in 1998.

The Butterfly pattern must include an AB=CD pattern to be a valid signal. In general, the AB=CD Pattern will possess an extended CD leg that is 127.2% or 161.8% of the AB leg.
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A near perfect example of the Butterfly pattern on the 1m time frame.

This 1m entry is the final confirmation of a system of analysis across multiple time frames.

1. Point B is at the 78.6% retracement of XA.

2. Point B extends beyond the 38.2% retracement of AB but does not exceed point A.

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3. Point D extends beyond 161.8%, potentially up to 261.8% to form point D.

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4. Entry at the 127.2% extension of XA with a Stop loss at the 161.8% extension of XA.

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15M Gartley pattern.

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ButterflyForexfxHarmonic Patternstradesytutorial

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