Bullish Butterfly Chart Pattern — How to Spot and Trade It

A harmonic extension pattern — D completes BELOW X at ~127-161.8% of XA.

In plain words

A stretched rubber band — pulled past the old low, it snaps back harder.

What the classic books say

The Bullish Butterfly is a reversal pattern with reference reliability Medium and illustrative behaviour of ~60-65% at valid PRZs (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Popularised by Pesavento and Carney.

Level by level

Beginner

Price dips under the old low to grab stops — then reverses hard.

Intermediate

D extends beyond X (127.2-161.8% of XA), a liquidity sweep before reversal.

Advanced

Best butterflies complete with momentum divergence at D.

Trade plan (educational template)

• Entry: At the 127-161.8% extension with reversal confirmation.
• Stop-loss: Beyond the 161.8% extension.
• Target: B level first, then A.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Catching D without any confirmation

Practise it now

• ▶ Draw the Bullish Butterfly with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._