B is.618 retracement of wave. The butterfly " pattern has a distinct retracement level (0.786) of XA swing. Targets are set at 100 of AD and 162 of XA from D levels.
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Point D is.618 extension. The binary.com trade strategy bullish pattern is often seen early in a trend, and it is a sign the corrective waves are ending and an upward move will ensue following point. Identify on the chart the starting point X, which can be any swing high or low point on the chart. Trading the, butterfly, pattern, once the, butterfly pattern is completed in PRZ level, wait for a confirmation bar, wide range bar or "higher high" close bar to suggest a potential reversal from "D" level. For the bearish pattern, look to short near D, with a stop loss not far above. (For related insight, see " Elliott Wave Theory.
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