Hi guys, here we have a bearish butterfly on the NZDUSD! Price looks like it's coming to the end of the 2nd phase of the correction wave (analysis linked below). Looking for the bearish bat to start downwards movement! This pattern was drawn up on the 4H chart, now looking at the 1 hour for entry. I never use indicators for entry points, but every once in a while I'll look for some divergence between them and price, as you can see with the RSI and MacD! (RSI is also overbought on the 4H chart; possibly hinting at a reversal). Hopefully price pushes that little higher to complete the pattern at the PRZ!
BUTTERFLY RATIOS:
AB: 0.786
BC: 0.382-0.886
CD: 1.618-2.24
XD: 1.27
BUTTERFLY RATIOS:
AB: 0.786
BC: 0.382-0.886
CD: 1.618-2.24
XD: 1.27
