The harmonic butterfly pattern is closely related to the Gartley 222 pattern, the main difference being that the butterfly pattern CD exceeds the leg XA. The Gartley Butterfly pattern is also identified by the classic “M” and “W” patterns. (See more about other forex models)
The butterfly motif was one of the many harmonic motifs described by H.M. Gartley, who at the time was doing well with the introduction Candlestick Patterns of Fib Rations by Scott Carney and Larry Pesavento. Visually, the butterfly pattern resembles Gartley motif 222, particularly the Fibonacci relations between the fulcrums.
What is the butterfly
The Mariposa model is located near the main investment points of the market, generally at medium highs and lows. The appearance of the butterfly pattern indicates rollovers during validation. The following graphic shows an illustration of bearish and sturdy butterfly patterns.
The AB leg returned to 79.9% of the XA leg
British Columbia has removed approximately 96.9% of the AB segment. That would have made this butterfly pattern a bit weaker, but it’s a butterfly pattern
The CD covers nearly 1.17% of the XA range and forms the basis of commercial entry.
As soon as the pivot point is formed in D, the price begins to degrade and quickly reaches the target of 61.8% and 1.272% of the CD range.
Although the previous bearded butterfly may not meet all the requirements, this shows that the operators must be a little flexible in the use of proportions.