Bullish Butterfly Pattern – USDCAD – Weekly Timeframe


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The pattern appears to be completed.  Price reversal also being signaled by the formation of a Doji.  Price also happens to be approaching a long term supply zone (resistance).

Entry Suggestion(s)
– Upon a break of the CD trend line

SL Suggestion(s)
– Below the low (0.9543) of the PRZ (Potential Reversal Zone)
– More aggressively below point D (0.9667)

Target Suggestion(s)
– Initial target = 38.2% of AD (1.0125)Note: The AC trend line can act as a reversal area.  A break above that would signal continued bullish momentum.One can use the 38.2% as a trailing stop as well.
– Target 2 = 61.8% of AD (1.0390) or 78.6% of AD (1.0597)
– Target 3 = 78.6% of AD (1.0597) or Point A (1.0852) or 127.2% of AD (1.1172) or 161.8% of AD (1.1583)or simply apply a trailing stop with no defined target.

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This entry was posted in Butterfly, Forex, Harmonic Pattern, USDCAD. Bookmark the permalink.

One Response to Bullish Butterfly Pattern – USDCAD – Weekly Timeframe

  1. Pingback: Updates on RUT & USDCAD Trades | One618 Trading Blog

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