Butterfly, Bat, and Crab Patterns
03/05/2015 7:00 am EST
Christopher Terry, of iMarketsLive.com, shares a video in which he looks at the daily chart of the S&P E-mini Futures and discusses the harmonic butterfly pattern that formed last week, the resistance levels to watch, and a currency pair that is now forming a daily bat pattern.
The large harmonic butterfly pattern that formed last week on the daily chart for the S&P 500 E-mini Futures—which was discussed in this video—formed right into resistance. By dropping down to the lower time frame, traders can now see that there are some key levels to watch for more signs of a push back up to another zone for resistance.
In the forex markets—on the daily chart of the EUR/AUD—traders can also see the bat pattern that is starting to form, which sets the stage for the next zone levels to watch. Respecting the downside risk—downside below 1.3953—then traders can see a move down into 1.3390 for a crab pattern.
By Christopher Terry, Contributor, iMarketsLive.com