Hey Traders around the world. This is an educational post for the traders who wants to apply Fibonacci tool in head shoulder pattern,just to make it more efficient. This was first introduced by Larry Pesavento in his book ( Trade what you see).
First thing is to identify the Butterfly pattern: The first profit objective will be at 78.6 retracement of AD of the sell from butterfly.
2nd sell will trigger at 50% retracement and the profit taking objective will be the touch of the neckline or break of it.
3rd sell can be triggered from the break of the neckline and the profit objective will be 1.272 of AD.
Thank you.
and do not forget to see the links given in the related ideas.
Cheers.
First thing is to identify the Butterfly pattern: The first profit objective will be at 78.6 retracement of AD of the sell from butterfly.
2nd sell will trigger at 50% retracement and the profit taking objective will be the touch of the neckline or break of it.
3rd sell can be triggered from the break of the neckline and the profit objective will be 1.272 of AD.
Thank you.
and do not forget to see the links given in the related ideas.
Cheers.
