Gartley butterfly strategy for binary options
Better together than separately! So inan experienced Wall Street analyst named Harold Gartley described a lucrative trading model in the form of a butterfly in his book.
Butterfly Harmonic Pattern Trading Strategy
In the current article, I prepared a strategy for you using the well-known Gartli's Butterfly, which is focused on CFD contracts. Features of the Gartley pattern I noticed that the main difficulty for beginning traders and even more experienced ones is precisely the competent construction of a butterfly on graphics.
Unfortunately, many do not understand the key rules and features of this pattern.
Schematically in the image, compliance with these rules is as follows. Such a scheme is needed to make it easier to remember the model.
Features of the Gartley pattern
In practice, it is better to consider real graphs. For example, the movement on Facebook FB from 16 on 27 March year.
Thus, the Gartley Butterfly is a model for continuing the trend and shows the prospects for a strong movement by inertia. Strengthening the Pattern with the Fibonacci Correction Any strategy based on the Gartley Butterfly implies a filter, otherwise there will be too many false inputs.
It so happened that Fibonacci levels are most often used to amplify the signal. I also apply the Fibo levels and quite successfully.
The following actions are performed for the signal filter: 1. The Fibo grid is stretched to the entire XA motion. Let's pay attention to an example. Movement on gold from 4 on 6 April year, just coincided with the Gartley Butterfly and the filter.
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Conditions for entering a long position If we intend to purchase an asset, then the following conditions must be met: 1. An example of a transaction. Traffic on Microsoft with gartley butterfly strategy for binary options on 17 April year. Conditions for entering a short position If we intend to sell a CFD contract, then the following conditions will be required: 1. Movement on Nike shares from 9 on 20 April In addition, this position of the price gives an extremely favorable risk-to-profit ratio.
As a result, the strategy of trading with the help of the Gartley Butter needs careful attention to the correct construction of the pattern on the chart, taking into account all the above requirements.
As a rule, this frightens traders, but in reality it is not difficult. It is necessary to confirm signals by Fibonacci levels, only so the pattern really works.
Apr 29 2017 Binary Options Strategy Harmonic Pattern Butterfly