Butterfly Pattern
Entry

Butterfly pattern: a reversal harmonic where D extends beyond X at 1.272-1.618 of XA. Catches exhaustion points at the end of strong moves. Price overshoots the original swing and exhausts, reversing sharply.

Harmonic1H, 4H3:1 R:RModerateAny
0.786
B-point XA
1.272+
D beyond X
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Butterfly Pattern Entry setup.

Butterfly pattern: a reversal harmonic where D extends beyond X at 1.272-1.618 of XA. Catches exhaustion points at the end of strong moves. Price overshoots the original swing and exhausts, reversing sharply.

Indicators Used
Harmonic ButterflyFibonacci Retracement
Rules
📈 Bullish Butterfly Long
  • XABCD structure with D EXTENDING beyond X
  • B retraces to 0.786 of XA (key Butterfly ratio)
  • C retraces to 0.382-0.886 of AB
  • D extends to 1.272-1.618 of XA
  • CD leg extends to 1.618-2.618 of BC
  • Enter long at D with reversal candle confirmation
  • Stop: below 1.618 extension of XA (tight stop beyond D)
  • Target: 0.618 retrace of AD
0.786
B-point XA
1.272+
D beyond X
💡 Pro Tip

Butterflies catch exhaustion moves. They work best after a fast, extended directional move. The D-point being beyond X means you're catching the absolute turn, which is both high-reward and higher-risk than deeper patterns like Bat or Gartley.

Common questions

What is the Butterfly Pattern Entry strategy?

Butterfly pattern: a reversal harmonic where D extends beyond X at 1.272-1.618 of XA. Catches exhaustion points at the end of strong moves. Price overshoots the original swing and exhausts, reversing sharply.

What's the pro tip for trading Butterfly Pattern Entry?

Butterflies catch exhaustion moves. They work best after a fast, extended directional move. The D-point being beyond X means you're catching the absolute turn, which is both high-reward and higher-risk than deeper patterns like Bat or Gartley.

What indicators does the Butterfly Pattern Entry strategy use?

The Butterfly Pattern Entry strategy uses the following indicators: Harmonic Butterfly, Fibonacci Retracement. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Butterfly Pattern Entry?

The Butterfly Pattern Entry strategy is best traded on the 1H–4H timeframe. This can be adjusted based on your trading style and market conditions.

More Harmonic Patterns Strategies

🦋 Gartley Pattern 🦇 Bat Pattern Entry 🔐 Cypher Pattern Entry