In terms of a butterfly pattern, it is always correlated with fake breakout. In this NZDUSD hourly chart example, it did break the structure to make a new low. As a with-trend trader, of course I'm more inclined to short but will pay some respect to the bullish butterfly.
Therefore, at the 1st TP of the butterfly there is also a structure pullback. That will be the trade for me !
Hello, great analysis, what is the stop loss and target?
Trader_Joe_Lee
⋅
@RockeyGu, stop loss for this trade will be above the C pivot point; and target will be 1:1, 1:2 and trail the others (pretty much all of my trades work this way)
tianmengdeng
⋅
nice one but it didnt hit my entry LOL
Trader_Joe_Lee
⋅
@tianmengdeng, That's how the market works though~ Keep on doing what we are doing, sometimes never entry, sometimes entry but stopped out, and sometimes there will be successful trades yo!
yitiancai
⋅
oh I love it
Trader_Joe_Lee
⋅
@yitiancai, the butterfly literally did nothing though lol