FOREX PRO Weekly July 02-06, 2012

[pragmatic]

Here is a possibility: 1.618 expansion of the H1 butterfly is at 61.8 expansion of the most recent ABC on H4 and solid support area. I will enter long and move stops to break even if I will have the chance

 

[pragmatic]

Hi Triantus,
Here we go...good luck dude...
Thanks and Best Regards

As I understand it, butterfly is an exhausting pattern, not just a drawing. So, in an uptrend, it has to indicate the exhaust of the buyers and reversal. In your example, you expect the continuation of the uptrend, based on the butterfly.

 

[Triantus Shango]

BUT if we look at the daily chart, we can see that there is a potential gartley/butterfly buy in progress. and that's at the bottom of a trend. hence if the harmonic pattern completes and is not invalidated, it will lend more credence to the short trend exhaustion, which will turn into a bullish reversal.

As I understand it, butterfly is an exhausting pattern, not just a drawing. So, in an uptrend, it has to indicate the exhaust of the buyers and reversal. In your example, you expect the continuation of the uptrend, based on the butterfly.

 

[D.R.&Quinch]

GulP! that was quick action!

 

[minimax]

Yes and on lower time frames everything is foggy again !

 

[D.R.&Quinch]

im staying short and not watching the granular detail, its yuck. almost stopped out at midday

 

[minimax]

I am to buy at 1,2380

 

[Soertje]

Wait a little longer

Why would you buy at 1.2380? On which ground? If I were you I would wait a little longer to be sure or you could end up caught and burned.

 

[Triantus Shango]

listen to soertje. take a look at the weekly chart. this baby is going down to retest the previous weekly low, at the very least. and the trend line, a little lower. instead, on a pullback, re-load the shorts.

I am to buy at 1,2380

 

[Triantus Shango]

forgot to add that 226x/8x is also where the FE 127.2 of that potential butterfly buy comes in, and that's also where the previous low on weekly is. so at this point, if the USD keeps on taking off, as per DXY, lower we go, as long as pull-backs remain under key levels, of course.