The Powerful Butterfly Reversal Pattern Update

Butterfly Pattern
Webcast starts at 8:30 EST
Leslie Jouflas
Founder of www.TradingLiveOnline.com
Presents The Butterfly Pattern

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Copyright 2011. All rights reserved
Disclaimer Please Read

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Books By Leslie Jouflas

-Excellent book on pattern recognition
technical trading well written and thorough with plenty of good illustrative charts. --Mark Douglas author, The Disciplined Mark Douglas, Trader and Trading in the Zone Larry Pesavento and Leslie Jouflas, the quintessential traders of chart patterns and the techniques of past masters of technical trading, have put together a compilation of their studies. Their experience extends over forty years. This book covers the essence of chart patterns trading plus the mental preparation necessary for successful trading. There is something in this book for both the beginner and experienced trader, Highly recommended. - John Hill President, Futures Truth Co. Hill,
TRADE What You SEE How to Profit from Pattern Recognition

Books By Leslie Jouflas

Essentials of Trading: Its Not WHAT You Think Its How You Think
What we will cover in the Butterfly Pattern Presentation
History of the Butterfly Pattern: where did it come from? Butterfly Pattern Structure: how it forms Chart Examples Characteristics of the Butterfly Pattern
Butterfly Pattern
The Butterfly pattern is an Extension Pattern First named Butterfly by Larry Pesavento Found in all markets and in all time frames Tend to occur at major tops and bottoms Reversal Pattern When this pattern fails it usually fails big
History of the Butterfly Pattern

The Butterfly pattern was born in 1992 when Larry Pesavento was sitting with Bryce Gilmore watching a pattern form from a program Bryce Gilmore developed called the Wave Trader. The Wave Trader Program calculated each swing and ratio using the Fibonacci summation series. The program analyzed and labeled patterns from 1 to 10. The highest level, ten, was the level when 10 swings and ratios came together at the same time and price. Larry Pesavento was watching as a Wave 10 pattern formed. It appeared in many colors and as two colorful right triangles. Larry commented that it looked like a butterfly and the rest is history.
Butterfly Pattern Structure

Should have symmetry The structure has 4 legs Must have an AB=CD leg in the extension The C - D leg extends beyond X The completion point is generally determined by the extension of the X - A leg This pattern takes some time to identify and learn, but well worth the effort!
Butterfly Buy and Sell Patterns

Two Triangles
Butterfly Pattern
Basic Structure
Butterfly Buy outline
Butterfly Sell Outline
AB is a retracement of the XA leg BC is a retracement of the AB leg
The final leg, C to D will extend above (sell) or below (buy) the starting point of X
Fibonacci Retracements Used
.382 .50. .618 .786 .886 1.27 extension 1.618 extension
Fibonacci Extensions Used for Pattern Completion areas
Calculating the Extension

1.27 Ratio 1.618 Ratio
Butterfly Pattern Structure Tips

Look for symmetry The final leg, or 4th leg, is extended beyond the previous swing high or low which is labeled X. Final leg is the CD leg. The extension will usually be a 1.27 or 1.618, but you may see other ratios. The BC leg will also be extended, but the completion point is usually determined with the X A leg and the AB=CD completion areas. The AB and BC legs of the pattern will usually be the .618 or .786 retracement. The pattern is valid if a .382 or .50 retracement of the AB leg or the BC leg. The B retracement can not exceed X and the C retracement can not exceed A. There may be other AB=CD patterns within the legs of the pattern
Comparison
Asymmetrical Symmetrical
Steep angle
Structure of the Butterfly Pattern on a price chart
Butterfly Pattern Structure

SP Emini Butterfly SP Emini Butterfly
Extended CD Leg
Extended Leg AB=CD in Extended leg
5 Items that Invalidate the Butterfly Pattern

1. 2.
No AB=CD Pattern Extension move beyond the 1.618 of X to A. The 1.618 is generally the maximum risk B can not be below X in a buy pattern formation. B can not be above X in a sell pattern formation C can not be above A for a buy pattern or below A for a sell pattern. Failure of D to extend beyond X
3.
4.
5.
Failed Butterfly Pattern
Only D Extends beyond X
B Can not be below X but you may still have a valid AB=CD Pattern (Can you find the butterfly sell?)
x
B
C A
Make sure you have a valid AB=CD Pattern

C Can not exceed A B Can not exceed X
Series of Butterfly Patterns
2 Butterfly Patterns within an AB=CD
Euro 2 Butterfly Sells
Use Retracements
Butterfly Sell Pattern Butterfly Sell to retracement
Euro Butterfly Buy
AAPL Stock Butterfly Sell Pattern
Failed Butterfly Pattern
Multiple Indexes with Butterfly Sells
Sp Emini
Example of the DOW, SP 500 Emini, NAZDAQ and Russell Indexes all forming Butterfly patterns simultaneously
March 2009 Butterfly Buy Pattern
Introducing the New TLO Live Trades Series!

Order Here http://www.tradingliveonline.com/butterfly-pattern
Free 30 Day Guest Pass to the Live Trading Room
*Trading Live Online is pleased to introduce the new

TLO Live Trades Series!
I created the TLO Live Trades Series for traders as something I wish I had found when I was learning trading!
Live trades recorded over several trading sessions. This package includes Butterfly pattern setups with a special bonus recording of the 3 Drive pattern managed in a trend. Invaluable insights as the patterns are forming in real time. The TLO Live Trade recordings answer all the questions traders come across in live markets to help them to make important trading decisions. Trading tips and nuances are covered for entries and how to re-enter a trade, profit targets, stop loss placement and trader psychology such as dealing with head chatter like taking profit targets too soon. Valuable information for high probability trade setups by reading support and resistance areas, using index divergences, tick charts and bar charts.
REFUND POLICY: Due to the educational nature of these educational materials, Trading Live Online, LLC is unable to offer any kind of refund on this product. We will promptly repair any defective link
Special Price Offer

TLO Live Trades Package is $127 and Includes Free 30 Day Guest Pass ($250.00 Value)
Over 2 hours of viewing live trades with trade management on the butterfly pattern; entries, stop loss placement and profit targets Butterfly Pattern Quick Tips recording Butterfly Pattern with 3 Part Profit target exits Butterfly pattern at larger resistance area (combining time frames) Butterfly pattern in the Euro market Bonus using tick charts vs. bar charts comparison with the AB=CD pattern Webinar recording of the "Powerful Butterfly Reversal Pattern Butterfly Power Point presentation including my notes to help you understand this trading pattern
Order Here http://www.tradingliveonline.com/butterfly-pattern

REFUND POLICY: Due to the educational nature of these educational materials, Trading Live Online, LLC is unable to offer any kind of refund on this product. We will promptly repair any defective link Copyright 2011Trading Live Online, LLC All rights reserved. Trading Live Online, LLC

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Butterfly Pattern

Webcast starts at 8:30 EST

Presents The Butterfly Pattern

Trading Live Online Policy

Disclaimer Please Read

Books By Leslie Jouflas

TRADE What You SEE How to Profit from Pattern Recognition

Books By Leslie Jouflas

What we will cover in the Butterfly Pattern Presentation

History of the Butterfly Pattern

Butterfly Pattern Structure

Butterfly Buy and Sell Patterns

Butterfly Buy outline

Butterfly Sell Outline

AB is a retracement of the XA leg BC is a retracement of the AB leg

Fibonacci Retracements Used

.382 .50. .618 .786 .886 1.27 extension 1.618 extension

Fibonacci Extensions Used for Pattern Completion areas

Calculating the Extension

Butterfly Pattern Structure Tips

Structure of the Butterfly Pattern on a price chart

Butterfly Pattern Structure

5 Items that Invalidate the Butterfly Pattern

Failed Butterfly Pattern

Only D Extends beyond X

Make sure you have a valid AB=CD Pattern

Series of Butterfly Patterns

2 Butterfly Patterns within an AB=CD

Euro 2 Butterfly Sells

Euro Butterfly Buy

AAPL Stock Butterfly Sell Pattern

Failed Butterfly Pattern

Multiple Indexes with Butterfly Sells

March 2009 Butterfly Buy Pattern

Introducing the New TLO Live Trades Series!

Free 30 Day Guest Pass to the Live Trading Room

*Trading Live Online is pleased to introduce the new

Special Price Offer

Order Here http://www.tradingliveonline.com/butterfly-pattern

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