Butterfly Pattern
A harmonic XABCD pattern where D extends beyond X — identifying extreme reversals at the end of large moves.
AB = 78.6% of XA; BC = 38.2%–88.6% of AB; CD = 127%–161.8% of XA
The Butterfly is a harmonic pattern discovered by Bryce Gilmore. Its defining feature is that point D extends beyond point X, meaning the final leg overshoots the pattern origin — signalling exhaustion at an extreme.
The PRZ at D is defined by a cluster of Fibonacci levels. A stop is typically placed just beyond the outer Fibonacci extension. Because D extends past X, the Butterfly frequently catches capitulation moves and trend extremes.
- AB = 78.6% retracement of XA
- BC = 38.2%–88.6% of AB
- CD = 127%–161.8% extension of XA