The has X A B and C D five points, enter the trade when these five points meet the fio ratio.The essence is form pattern recognition. Butterfly's B requires a 78.6% correction near the previous XA , and the B point in the figure is near 6028, which fits this ratio 78.6%. The point C cannot exceed AB, so the range is actually larger.The potential D points is determined by the ratio of the XA and BC .D is 1.272 or 1.618 times of XA, (in this case 1.618 times), while D point is between 1.618 and 2.618 times BC , now D is 2.24 times BC .
It can be said that BC's 2.24 times and XA's 1.618 times forms the potential reverse zone , which is near 6151
In this area, the confirmation of a candle signal is the icing on the cake and can be released.The usual signals are shooting stars, hanging necklines and so on
After short it , the target position of the short position is located near 38.2% of a-d, and 6064 of the figure
Thank you, good luck
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Firstly great call! well done.
Im very curious and would like to ask one question. How did you decide that the ratio xA 1.618 & BC 2.24 was the right combination to use in this situation? How do you decide whether to use the xA 127% or 162%.
i am relatively new to harmonics and would very thankful for any insight you may be able to share with me.