Trading method "The Butterfly Effect."

Trading Strategy "Butterfly Effect" is based entirely on the corresponding harmonic pricing model. Butterfly model is based on the graphic pattern with the addition of Hartley (for accuracy) Fibonacci numbers. Any harmonic model to recognize more complex than a simple graphic. But if the trader understood the principle of its actions and learned to find on the chart, then the further work process is not absolutely no difficulty. Harmonic price patterns are equally likely to be formed on all currency pairs and time scales, from minute to month.

The principle of market analysis on the pricing model, "Gartley Butterfly."

At first glance, this model can recall Elliot wave, but it is only at first sight, and upon closer inspection, differences will be so obvious that these associations would not happen again.

Thus, Figure 1 shows a bullish butterfly pattern (for an uptrend), and trading on it will be made ​​only for the purchase of the fiscal instrument. Red broken line in the figure represents the price movement chart of traded instruments. The trading terminal is not important type of graph that will be analyzed: bars, Japanese candlesticks or linear. The main thing that the trader was easier to find the graphic shape.

- Point - early price movements, the starting point of the model butterfly Gartley.

- From A to A - upward changes in prices. This move should be a pulse rates, that is strong and without any major setbacks. On the segment HA, which is taken as a basis, stretch "Fibonacci", which is the standard tool for all of the terminal. Levels stretch toward price, in this case, from the bottom up.

- From A to B - Correction of pulse movement XA. Prerequisite: Point B should be in the range of 50% -61.8% Fibonacci levels for HA segment. If the price has reached 50% of the value and jumped up, then this is the best scenario.

- B to point C - the second upward movement in model "Gartley Butterfly." Prerequisite: Point C should be in the range of 61.8% -78.6% Fibonacci of AB.

- From point C to D - the second corrective movement model. Condition: The segment CD must be from 127.2% to 161.8% of the length of the segment Sun Point D - is the price at which you can enter into a trading operation on the purchase.
A point should be located in the range of 61.8% -78.6% for the HA segment Fibonacci levels.

If, in this vicious cycle of price construction is not to fulfill a condition, the bargain is not open is not necessary. Particular attention should be paid to the point D, at which you want to enter the market.
Open orders in two ways: stand pending orders at the right price range, or wait to the previous conditions are met.

Once triggered a pending order for the opening, it is necessary to set a mandatory stop-loss. The recommended level of stop-loss on a trading position - slightly below the 78.6% Fibonacci retracement.
The level of profit-taking, every trader in the method itself determine. You can use several methods: treyling, set profit target for the necessary number of points, set a trading position in the "break-even" and follow it and so on. The main thing is that the position did not bring financial loss.
All these conditions are the exact opposite should be observed for bearish "Butterflies Hartley." See Figure 2.

Little practical addition to the method: ideal figures Butterfly Forex rare, but if there were, then work out safely. And open trade orders on them with a very high probability you will bring only profit.

The method of "The Butterfly Effect" only on first acquaintance may confuse the trader. But if you carefully examine all the terms and conditions of bidding, and to practice on a demo account will not find any difficulty. This strategy does not use any more technical tools, shall not be a free revisions and amendments, only works on its own terms, it is plus or minus, you decide. We can only advise: if you use this method, not to supplement it, and check it in parallel with other trading signals, also a sound strategy.