By now you should have already read what the butterfly pattern is, how it was discovered and its different types -> Butterfly pattern definition
You should also have read about the importance of the pattern location and the power that comes from it -> Butterfly pattern and Elliot Wave theory
Enough teory for now. What at the end counts is that we look here at probably most powerful and profitable price pattern forming on the charts (of course together with the Gartley, 121 and Bat patterns).
When you see its first 3 legs of the butterfly pattern completed and forming swing CD crossing the point B price level - GET READY. Now your work starts.
See the following diagram presenting the moment (price location) where it's worth to observe the emerging butterfly pattern. Attempts trying to prognose potential butterfly pattern before price reaches presented point is in our opinion loss of time, efforts and money.
For more info about Butterfly pattern and the confirmation methods see -> Butterfly pattern - table of content
Last edited by kor4x; 08-19-2012 at 09:16 PM.