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Saturday, December 26, 2009

Butterfly Model


Starting from x to A, which is directed upward or downward movement in the price significantly in one direction and then begins to price in the correction of the A and B, and then down to the Echo to C and D reflects the tendency to


General conditions of a butterfly

1 - AB is less than or equal to CD and CD In other words, be greater than or equal to AB
2 - point B be corrected percentages (61.8% - 78.6% - 88.6%) of the rib XA any side AB be corrected ratios of the above-mentioned rib XA
3 - point C should be Alataatjaoz point A
4 - point D to be corrected (1.27 or 1.618 if the model either bullish or bearish) from A correct any rib CD rates mentioned XA
5 - point D be limited to between 1.27 to 2,618 BC from the rib
6 - In this model when the arrival of D to the level of 127% of the rib XA and bugging out price break in the case will go to the level of 161.8% XA
7 - point D beyond the point X


How to access and trading in this form

1 - Access from the C by buying or selling model and the goal D and enter the good and security of C when C corrected percentage from 78.6% to 88.6% of the side AB Alastob and thus be less and the objective is to weaken Alastob
2 - Access the sale or purchase with a broken B and D is the target
3 - Login to purchase or sell upon completion of the form when D
For example, if you buy into the log after a break of B will be out of your purchase at D and then enter the sale of D and often bounce to the point C again and experiment and observation, but our goal will be in proportion to the side CD Alvebonachy The aim would be sandwiched between at least 23.6% to 38.2 %


Note: If entry of C and B were corrected 61.8% of the rib XA A summit was broken in this case will reverse the process and will have the form AB = CD and purpose be at 161.8% of the side BC would also be a model 123.

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