Month: February 2021

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Trading Ideas

Butterfly Pattern Trading: Learn the Basics

February 17, 2021 admin Comments Off on Butterfly Pattern Trading: Learn the Basics

Markets can be volatile at times. But even amidst volatility, there are opportunities for pattern trading—including butterfly pattern trading. This charting pattern is naturally the product of volatility and deals with distinct swings in the market. Like most technical patterns, it’s named for the shape it manifests: two converging triangles, or, a butterfly.
This technical pattern and its affiliated trading strategy are for advanced traders. It’s one thing to recognize a butterfly pattern; it’s another thing entirely to understand the ratios necessary to define acting on it. That said, it’s important to understand what you’re looking at when a butterfly …read more […]