Butterfly pattern
A five-point shape where B retraces 78.6% of the first leg and D extends beyond the start, to 127.2% of XA.
What it shows
The Butterfly was defined by Bryce Gilmore. Its B is deep at 78.6% of XA. D goes past X, reaching 127.2% of XA.
That makes it the first of the harmonic patterns where D goes beyond the starting point.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Find five alternating swing points X, A, B, C, D.
- B must be 78.6% of XA.
- C must be 38.2% to 88.6% of AB.
- D must be 127.2% of XA (±5%).
Starting values: Ratio tolerance ±5%; B 78.6% of XA; D 127.2% of XA. These are proposed and will be tuned on real price data before launch.
How to read it
- B is deep and D goes beyond X.
- Dots are the five points.
- Dashed lines show the ratio triangles.
Status labels you may see
| Label | What it means |
|---|---|
| Pattern forming | Points X through C match, D has not been reached. |
| Pattern complete | D matches the ratio rule. |
What cancels it
A close well beyond D (more than 5% past it).
What traders check next
- How far D went past X.
- What happened at D.
- Whether other levels agree with D.
Limits
- D beyond X means the pattern is easy to fail.
- Tolerance lets many shapes qualify.
- Rarely tested in research.
Try it in forecastviz
- Open any ticker and choose Fibonacci and harmonic patterns → Butterfly pattern in the left menu.
- Switch between 6M, 1Y, 3Y to see how the picture changes.
- Compare with Gartley pattern and Bat pattern on the same chart.
Questions
Why Butterfly?
The shape looks like wings. It is a name.
Is there a downward version?
Yes, the mirror image.
Related trends
Further reading
- Boroden, Fibonacci Trading
- Carney, Harmonic Trading
- Murphy, Technical Analysis of the Financial Markets
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.