In this article, I would like to present a remarkable Gartley harmonic pattern called the ‘Pasavento Butterfly’. The Harmonic Pattern ‘Pasavento Butterfly’ was discovered by students and followers of Harold Gartley – Jill Mure and Harry Pasavento and is considered the ideal model of the ‘Gartley Butterfly’ pattern.
Key characteristics of the ‘Pasavento Butterfly’ pattern according to Fibonacci levels
- The formation of peak B at the 78.6% level from segment XA – the most fundamental and most empirically verified level for this peak in the ideal ‘Gartley Butterfly’ model. Of course, sometimes other variations of the position of this point are allowed, but such signals are very questionable, so it is better to ignore them.
- The formation of peak C is allowed to the levels of 38.2%, 61.8%, and 78.6% from the price movement AB.
- An essential condition for the end of the entire model, that is, the formation of peak D, is its consolidation on the levels of 127% or 161.8% from the movement XA. With respect to segment BC, peak D, when this essential condition is met, is usually found on the levels of 161.8%, 224%, or 261.8% from the movement BC.
Looking at Figure 1, which shows the bullish model of the harmonic pattern ‘Pasavento Butterfly’, you can immediately notice its differences from the Gartley model – point D is much lower than the peak X.
All conditions for forming the bearish pattern ‘Pasavento Butterfly’ completely match the bullish model.
Example of the Harmonic Pattern ‘Pasavento Butterfly’
Once you understand the mathematical breakdown according to the Fibonacci levels of the ‘Pasavento Butterfly’ pattern, we will move directly to market examples.
Look for Gartley harmonic patterns, practicing Fibonacci levels and careful observation of events on the market. Enjoy trading and until next time.
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“short_description”: “The ‘Pasavento Butterfly’ is an ideal ‘Gartley Butterfly’ harmonic pattern with key Fibonacci levels.”,
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FAQ
What is the ‘Pasavento Butterfly’ pattern?
The ‘Pasavento Butterfly’ is a harmonic pattern used in technical analysis to predict potential price reversals based on specific Fibonacci levels.
How is the ‘Pasavento Butterfly’ different from the ‘Gartley Butterfly’?
The ‘Pasavento Butterfly’ is considered the ideal version of the ‘Gartley Butterfly’ with more precise Fibonacci levels and structural differences in its formation.
Why is the ‘Pasavento Butterfly’ important for traders?
The ‘Pasavento Butterfly’ helps traders identify potential entry and exit points by using defined Fibonacci retracement and extension levels to forecast market movements.
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