Bearish Butterfly
Definition
D completes ABOVE X at ~127-161.8% of XA — a stop-run above the old high, then reversal.
Psychology
Price pokes above the old high to trap breakout buyers — then rolls over.
Real-life analogy
💡 A pole-vaulter clearing the bar — and landing on the other side.
Expected direction
down
Entry / Stop / Target
Entry: At the 127-161.8% extension with bearish confirmation. · Stop: Beyond the 161.8% extension. · Target: B first, then A.
Historical behaviour
Mirror of the bullish butterfly.
Illustrative success rate
~60-65% at valid PRZs · Medium reliability
Common beginner mistakes
- • Confusing it with a simple breakout
Quick quiz — did you understand?
1. Is the Bearish Butterfly generally considered bullish, bearish, or neutral?
2. After a confirmed Bearish Butterfly, the expected direction is usually:
3. Which is a common beginner mistake with the Bearish Butterfly?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.