Harmonic pattern "Butterfly Pasavento" - a perfect "Butterfly Gartley
In this article, I suggest you consider such a wonderful harmonic Gartley model as the "Butterfly Pasavento". Harmonic pattern "Butterfly Pasavento" was discovered by Harold Gartley's students and followers, Jill Moore and Harry Pasavento, and is an ideal model Gartley's Butterfly pattern.
The main characteristics of the pattern "Butterfly Pasavento" by Fibonacci levels
- The formation of the top B at 78.6% from the segment XA is the most basic unshakeable and the most empirically tested level for this top in the ideal Butterfly Gartley model. Of course, sometimes other variations in the location of this point are allowed, but such signals are very, very doubtful, so it is better to ignore them.
- The formation of the top C is allowed to the levels of 38.2%, 61.8% and 78.6% from the price movement AB.
- The obligatory condition of the end of the whole model, namely the formation of the top D, is its fixing at the levels of 127% or 161.8% from the movement XA. In relation to the segment BC the top D, if this condition is fulfilled, is usually at the levels 161.8%, 224% or 261.8% from the movement BC.
Looking at Figure 1, which shows a bullish model of the harmonic pattern "Butterfly Pasavento", you can immediately notice its differences from the Gartley's model - the point D is much lower than the top X.
All conditions for the formation of a bearish pattern "Butterfly Pasavento" are fully consistent with the bull pattern.
Example of the harmonic pattern "Butterfly Pasavento"
Capturing the essence of mathematical decomposition by Fibonacci levels The "Butterfly Pasavento" pattern, let's go directly to the market examples.
Look for harmonic Gartley patterns by exercising Fibonacci levels and careful observation of market events. Have fun trading and see you again.