20 Oct 10 - Bullish Butterfly Pattern on AUD/USD - H1 Chart

A nice bullish Butterfly pattern completion was observed before the opening of the Asian session this morning.


Upon the complete test of the entire PRZ, a long position was executed.


The following signals were observed prior to the trade entry:

• A confluence of 3 Fibonacci ratios - 1.27 XA @ 0.97017, 1.618 BC @ 0.97020 and 1.27 alternate AB=CD @ 0.97001. These values were significant as they were formed near the psychological value of 0.97000.
• Minimum Fibonacci Time Projection of close to 0.382 was seen which gave me more confidence in this trade.
• A morning star formation was seen at the T-Bar close.

 Trade Details:

• Date: 19 Oct 10
• Time: GMT 22:00
• Entry Price: 0.97114
• S/L: 0.96500 (61.4 pips)
• T/P: 1st Target: 0.97911 (79.7 pips) - 0.382 AD Swing, 2nd Target: 0.98716 (160.2 pips) - 0.618 AD Swing

Trade Update - 21 Oct 10, SGT 23:59

1st Target Objective - Instead of waiting for the price to be triggered, the 1st batch was closed on 20 Oct 10, GMT 11:14 with a profit of 53.7 pips.

2nd Target Objective - 2nd batch target objective was triggered on 20 Oct 10, GMT 15:27 with a profit of 160.2 pips (See attached chart).


Note: In addition to this nice move, the move mentioned on GBP/USD earlier also turned out to be a nice move as seen in the chart attached at the bottom.

Note: A similar pattern completion was also observed on the GBP/USD, but since I was already taking the AUD/USD pair, the attached chart is another learning example which happened to be quite a nice trade too.

Since I am not an advocate of over trading, I have included the following chart to illustrate the beauty of Harmonic Trading. It is interesting to note that for most of the harmonic pattern completion, they usually offer a nice tradable opportunity, but it should be noted that not all harmonic patterns will offer a "home run".