ah thanks for the detailed explanation Damian! Great to have another lesson learned in FPA!Ill pop in with all due respect.
Why is it butterfly sell? cheater, You've drawned a "W" allright? Made of four segments. XA- AB -BC- CD from left to right when watchin in the screen. So the last three segments form a Bullish ABCD pattern, WICH...if will expand over 100% from XA (fib ratio 1)
it has chances of doing a complete reversal (market moving below point A after completition at D). On this forum all views are accepted since it's an educational review of the forex market, but normally we look forward to act upon 127% or 168% extension of that ABCD move (even if on the book "trade what you see", where butterfly is explained in detail and with graphics, youll find that 200% and 268% extensions are also taken into account).
Your butterfly has a bullish ABCD move...and the "butterfly" being a reversal pattern, we look forward to SELL so...its a butterfly sell.
If u got the truly butterfly pattern on daily time frame that its going to work then you should expect a move that targets 127% from D to A. This means target is to the downside on this particular example wich stands below A point of the "W" you've drawned in blue. good luck.