Hi folks, hope you are doing well. In my previous post on BAT with US dollar pair we have seen that the Basic attention token had completed the formation of bullish Butterfly pattern. The Butterfly was started with the candlestick of 16th Feb 2020 and completed on the candlestick of 26th Feb 2020. This chart was based on 12 hour time period and as per Fibonacci sequence of Butterfly I predicted that the price action should move up from the potential reversal zone of this pattern to enter in the Fibonacci projection area of A to D leg from 0.382 to 0.786 Fib projection level.
Then we have witnessed that the price action moved up on 2nd March 2020 and entered in the target sell zone. This time the Basic attention token gave more than 21% good profit for its traders on a short term 12 hour chart.
Before execution:
After execution:
A new harmonic Butterfly pattern:
This time on 2 days midterm chart Basic attention token has formed another harmonic bullish Butterfly pattern and entered in potential reversal zone. Even though the price line has just hit the spike in buying zone and already has hit a spike in sell zone but I am expecting that the BAT will again make a correction rally and will give another chance to catch it from potential reversal zone.
Let’s dig the pattern deeper to see how perfect it has been formed.
After initial leg (X to A) the A to B leg is retraced between 0.618 to 0.786 Fibonacci and then B to C leg is projected between 0.328 to 0.886 Fib of A to B Fibonacci projection area and last leg (C to D) is retraced between 01.27 to 01.618 Fibonacci.
Buying And Sell Targets:
The buying and sell targets according to harmonic Butterfly pattern and its Fibonacci sequence should be:
Buy between: $0.0985 to $0.0372
Sell between: $0.1464 to $0.2612
Stop Loss:
The potential reversal zone area that is up to to $0.0372 can be used as stop loss in case of complete candle stick opens and closes below this level.
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.