AKT/USDT

30 มิ.ย.

A bullish butterfly is a specific harmonic chart pattern used in technical analysis to identify potential reversal points where an asset's price may change direction from a downtrend to an uptrend. Like the bearish butterfly, the bullish butterfly relies on specific Fibonacci retracement and extension levels.

Key Features of the Bullish Butterfly Pattern
The bullish butterfly pattern consists of five points labeled X, A, B, C, and D. The pattern is formed by four distinct price swings:

X to A: The initial move down from point X to point A.
A to B: A retracement move up from point A to point B, which is typically 78.6% of the XA leg.
B to C: A move down from point B to point C, which is usually 38.2% to 88.6% of the AB leg.
C to D: The final move up from point C to point D. The CD leg is an extension of the XA leg, and D is often found at 127.2% to 161.8% of the XA leg.
Fibonacci Relationships
XA: Initial downward leg.
AB: Retracement of 78.6% of the XA leg.
BC: Can be between 38.2% to 88.6% retracement of the AB leg.
CD: The most critical leg, which is an extension of the XA leg and can be 127.2% to 161.8% of the XA leg.
Trading the Bullish Butterfly Pattern
Entry Point: Traders typically enter a long position at point D, where the pattern completes, and a reversal is expected.
Stop Loss: A stop loss is generally placed below point D to manage risk in case the price continues to fall.
Target Price: The initial target is usually set at point B, and if the price continues to move favorably, traders might target point C or even beyond.