Hello there,
On the chart you see a pitchfork in which price has made some nice bounces. There is a potential bat pattern as you can see but this might actually become a butterfly depending on where you start to draw X.
And the thing that is ironic here is that there are two lower trendlines where price could find D and thus either forming a bat or a Butterfly. These are the green pitchfork trendline and the black solo trendline which intersects with the blue dotted line.
Note that even if this were a butterfly it could also find D at the same place as the bat, only that if price does find D at the black solo trendline the bat pattern is invalid but the butterfly pattern still stands.
Other than that theres a horizontal support(dashed grey line) and the 78.6% fib level is close by. Observing how price reacts on these, should it touch is vital for a good entry.
Be patient and wait for a clear signal to long.
Cheers!
On the chart you see a pitchfork in which price has made some nice bounces. There is a potential bat pattern as you can see but this might actually become a butterfly depending on where you start to draw X.
And the thing that is ironic here is that there are two lower trendlines where price could find D and thus either forming a bat or a Butterfly. These are the green pitchfork trendline and the black solo trendline which intersects with the blue dotted line.
Note that even if this were a butterfly it could also find D at the same place as the bat, only that if price does find D at the black solo trendline the bat pattern is invalid but the butterfly pattern still stands.
Other than that theres a horizontal support(dashed grey line) and the 78.6% fib level is close by. Observing how price reacts on these, should it touch is vital for a good entry.
Be patient and wait for a clear signal to long.
Cheers!