Bullish.
Butterflies are often found at tops and at bottoms.
The butterfly should terminate close to the 1.272 of XA. This one was a bit shy of the 1.272.
The 2nd leg, the retracement should be close to the .786 of XA.
Peak 2 is lower than peak 1. It is a crooked M.
There is no pocket pivot noted at this last leg yet price gapped up.
In a perfect world targets for this pattern would be a the white lines I drew.
I am not sure this is a perfect world though.
This broke down from a triangle and the bottom trendline of that triangle could act as resistance.
No recommendation.
The butterfly is an extension pattern and the final leg ends below X in the bullish version.
It is also considered a price exhaustion pattern.
Target 1 level can also cause some resistance and sometimes all you get is T1 )o:
Every stock is different just like everyday in this market can be different.
Butterflies are often found at tops and at bottoms.
The butterfly should terminate close to the 1.272 of XA. This one was a bit shy of the 1.272.
The 2nd leg, the retracement should be close to the .786 of XA.
Peak 2 is lower than peak 1. It is a crooked M.
There is no pocket pivot noted at this last leg yet price gapped up.
In a perfect world targets for this pattern would be a the white lines I drew.
I am not sure this is a perfect world though.
This broke down from a triangle and the bottom trendline of that triangle could act as resistance.
No recommendation.
The butterfly is an extension pattern and the final leg ends below X in the bullish version.
It is also considered a price exhaustion pattern.
Target 1 level can also cause some resistance and sometimes all you get is T1 )o:
Every stock is different just like everyday in this market can be different.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.