What is bearish butterfly pattern?

The Bearish Butterfly Pattern is a reversal chart pattern that can show technical traders a high probability price level to sell short at a very overbought reading after a long move and extension in price from the mean creates a high probability for a retracement and swing back down.

What is the difference between AB & BC butterfly pattern?

The AB leg of the bullish Butterfly retraces up to 62.1% of the XA leg. The BC leg retraces to 65.6% of the AB leg. And, CD leg extends XA leg by 1.40%. It resembles M. b. Bearish Butterfly pattern

What is a butterfly pattern?

The butterfly pattern helps you identify the ending of a price movement, meaning that you can enter the market during the reversal of the price. The Butterfly Pattern is an easy-to-spotHarmonic pattern that can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy.

What is a butterfly reversal pattern?

The trading and investing signals are provided for education purposes and if you use them with real money, you do so at your own risk. The Butterfly pattern is a reversal pattern composed of four legs, similar to the Gartley and Bat pattern, marked X-A, A-B, B-C and C-D. It helps you identify when a current price move is likely approaching its end.