Bullish Butterfly
Definition
A harmonic extension pattern — D completes BELOW X at ~127-161.8% of XA.
Psychology
Price dips under the old low to grab stops — then reverses hard.
Real-life analogy
💡 A stretched rubber band — pulled past the old low, it snaps back harder.
Expected direction
up
Entry / Stop / Target
Entry: At the 127-161.8% extension with reversal confirmation. · Stop: Beyond the 161.8% extension. · Target: B level first, then A.
Historical behaviour
Popularised by Pesavento and Carney.
Illustrative success rate
~60-65% at valid PRZs · Medium reliability
Common beginner mistakes
- • Catching D without any confirmation
Quick quiz — did you understand?
1. Is the Bullish Butterfly generally considered bullish, bearish, or neutral?
2. After a confirmed Bullish Butterfly, the expected direction is usually:
3. Which is a common beginner mistake with the Bullish Butterfly?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.