Classification: windy permit: open

Last class, we mainly explained the objective existence of butterfly shape in the trend of K-line, and the existence of this view is very important, because all the analysis of butterfly principle we have done is based on it. In addition, the differences and advantages between the butterfly principle and other technical analysis are also introduced. In this lesson, we learned about the core position of AB=CD in butterfly morphology and the influence of the position of point B on the final result.

Butterfly principle AB=CD In the comparison table (the chart in the first lecture), AB=CD has three meanings:

First, the time period (number of candles) of AB segment trend should be infinitely close to the time period (number of candles) of CD segment trend.

Second, the spread of AB segment should be infinitely close to CD segment.

Thirdly, the golden section callback ratio at point C of AB trend and the golden section callback ratio predicted at point D of BC trend are infinitely close to AB=CD (callback ratio/callback ratio) in the comparison table.

Note: the word "infinite approximation" is vague, because when the trend forms an effective butterfly shape (operating butterfly shape), in most cases there will be some deviations in time period, price difference and callback ratio, and we can't apply a unified formula to analyze and solve this deviation, so I can only use the word "infinite approximation". The prediction risk brought by this deviation can be controlled from a certain point of view, but beginners need to analyze and accumulate experience themselves, so as to pursue the judgment of harmonious form.

Among these three meanings, the condition that the table must meet is the infinite approximation of AB=CD (callback ratio/callback ratio). Through the previous cases, we found that even if the deviation of the first two conditions is large, if the combination of AB=CD callback ratio is very close, the predicted D point can be successfully put in place. If the three conditions are met at the same time, the success rate of prediction will undoubtedly increase, and it is easier to form a butterfly flip after the D point is in place. However, under the premise that the callback ratio is consistent with each butterfly shape, the coordination of the trend between the points in the shape is also an important factor to determine the success rate of prediction (this point has been explained in detail in the second lecture).

In the comparison table of AB=CD, we found that the proportional relationship of AB=CD always exists in other Butterfly forms (Gartley, Butterfly, Bat, or AB=CD) except crab form, but the callback proportion combination of AB=CD is different in different butterfly forms. For example, the proportion of AB=CD in the form of Gartley is only (0.382/2.240), while that in the form of butterfly can be (0.382/2.240), (0.382/ 1.6 18) or (0.382/2.665438). The different forms of AB=CD directly lead to different results of predicting point D.. This also leads to the question of how to choose the butterfly shape.

Because ab = the intersection of different forms of CD callback proportion combination. So we can't choose a valid butterfly shape from AB=CD. As long as we choose from the B-point callback ratio of XA segment, we can preliminarily judge which butterfly shape the trend belongs to. If the callback ratio of point B of XA segment is 0.382, 0.447, 0.500, 0.6 18, then the shape can be initially locked in Gartley, Bat or Crab. If the callback ratio of point B to XA segment is 0.6 18, 0.786 and 0.886, then the shape can be initially locked as a butterfly. Then, according to the callback ratio of point C to AB, the corresponding combination of AB=CD callback ratio (callback ratio/callback ratio) is found, so as to find the predicted position of point D. Obviously, the choice of callback ratio of point B to XA determines different forms, which determines the final prediction result. Therefore, it is hoped that investors will make more efforts in the choice of point B, especially in the two forms of Gartley and Butterfly. The 0.6 18 callback of point B to XA is the critical point of the two forms, which is difficult to judge. This usually happens. For the judgment of point D, our first goal is the combination with relatively conservative morphological proportion. For example, in the chart, point B at 0.6 18 is the XA callback, and point C at 0.786 is the AB callback. These two callback positions satisfy both Hartley and Butterfly morphology, so the morphology is locked in Hartley first, and then the callback position at point D of BC is predicted to be relatively conservative at 1.27. After the trend reaches the target, we will analyze whether the trend will form a butterfly shape transition, that is, whether the trend will continue to go up (down) along the CD segment and reach the callback position of point BC of butterfly shape 1.6 18, 2.240, 2. 18. If the conditions are ripe, you can add positions appropriately.

This chapter introduces a typical case, and we cite the butterfly principle and diagram of table 15 serialized in the blog as a typical case analysis. In this picture, the trend is from Gartley form to butterfly form.

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Analysis and explanation of butterfly principle in foreign exchange market (IV) 2007-11-3018: 42 Last time, we mainly explained the objective existence of butterfly shape in the trend of K-line. The existence of this view is very important, because all the analysis of the butterfly principle we do is based on it. In addition, the differences and advantages between the butterfly principle and other technical analysis are also introduced. In this lesson, we learned about the core position of AB=CD in butterfly morphology and the influence of the position of point B on the final result.

Butterfly principle AB=CD In the comparison table (the chart in the first lecture), AB=CD has three meanings:

First, the time period (number of candles) of AB segment trend should be infinitely close to the time period (number of candles) of CD segment trend.

Second, the spread of AB segment should be infinitely close to CD segment.

Thirdly, the golden section callback ratio at point C of AB trend and the golden section callback ratio predicted at point D of BC trend are infinitely close to AB=CD (callback ratio/callback ratio) in the comparison table.

Note: the word "infinite approximation" is vague, because when the trend forms an effective butterfly shape (operating butterfly shape), in most cases there will be some deviations in time period, price difference and callback ratio, and we can't apply a unified formula to analyze and solve this deviation, so I can only use the word "infinite approximation". The prediction risk brought by this deviation can be controlled from a certain point of view, but beginners need to analyze and accumulate experience themselves, so as to pursue the judgment of harmonious form.

Among these three meanings, the condition that the table must meet is the infinite approximation of AB=CD (callback ratio/callback ratio). Through the previous cases, we found that even if the deviation of the first two conditions is large, if the combination of AB=CD callback ratio is very close, the predicted D point can be successfully put in place. If the three conditions are met at the same time, the success rate of prediction will undoubtedly increase, and it is easier to form a butterfly flip after the D point is in place. However, under the premise that the callback ratio is consistent with each butterfly shape, the coordination of the trend between the points in the shape is also an important factor to determine the success rate of prediction (this point has been explained in detail in the second lecture).

In the comparison table of AB=CD, we found that the proportional relationship of AB=CD always exists in other Butterfly forms (Gartley, Butterfly, Bat, or AB=CD) except crab form, but the callback proportion combination of AB=CD is different in different butterfly forms. For example, the proportion of AB=CD in the form of Gartley is only (0.382/2.240), while that in the form of butterfly can be (0.382/2.240), (0.382/ 1.6 18) or (0.382/2.665438). The different forms of AB=CD directly lead to different results of predicting point D.. This also leads to the question of how to choose the butterfly shape.

Because ab = the intersection of different forms of CD callback proportion combination. So we can't choose a valid butterfly shape from AB=CD. As long as we choose from the B-point callback ratio of XA segment, we can preliminarily judge which butterfly shape the trend belongs to. If the callback ratio of point B of XA segment is 0.382, 0.447, 0.500, 0.6 18, then the shape can be initially locked in Gartley, Bat or Crab. If the callback ratio of point B to XA segment is 0.6 18, 0.786 and 0.886, then the shape can be initially locked as a butterfly. Then, according to the callback ratio of point C to AB, the corresponding combination of AB=CD callback ratio (callback ratio/callback ratio) is found, so as to find the predicted position of point D. Obviously, the choice of callback ratio of point B to XA determines different forms, which determines the final prediction result. Therefore, it is hoped that investors will make more efforts in the choice of point B, especially in the two forms of Gartley and Butterfly. The 0.6 18 callback of point B to XA is the critical point of the two forms, which is difficult to judge. This usually happens. For the judgment of point D, our first goal is the combination with relatively conservative morphological proportion. For example, in the chart, point B at 0.6 18 is the XA callback, and point C at 0.786 is the AB callback. These two callback positions satisfy both Hartley and Butterfly morphology, so the morphology is locked in Hartley first, and then the callback position at point D of BC is predicted to be relatively conservative at 1.27. After the trend reaches the target, we will analyze whether the trend will form a butterfly shape transition, that is, whether the trend will continue to go up (down) along the CD segment and reach the callback position of point BC of butterfly shape 1.6 18, 2.240, 2. 18. If the conditions are ripe, you can add positions appropriately.

This chapter introduces a typical case, and we cite the butterfly principle and diagram of table 15 serialized in the blog as a typical case analysis. In this picture, the trend is from Gartley form to butterfly form.

From 2007- 1-3 1 to 2007-2-8, the pattern of NZD/USD hour changed from Gartley to butterfly. The target bit also rises from the initial D point to D 1 point.

Point B meets the callback of 0.6 18 for XA. Therefore, morphology can be initially locked in Gartley, butterfly or crab morphology.

Point C encountered a 0.886 callback. This can lock the shape in Gartley or Butterfly. If Gartley form AB=CD is satisfied, point D should satisfy BC's callback 1. 129, and the price is 0.6873.

The trend continues to rise after completing the Gartley form, and finally forms a flip after completing the butterfly form. In butterfly form, point D 1 meets BC's callback 1.270, and the price is 0.6884.

Through the above legend, we find that the butterfly shape can change with the trend, that is, the D point will change with the shape. Therefore, it is unwise to make clear the final conclusion of this chapter and simply predict the flip after point D according to the English data of butterflies. Make full use of the change of the proportion of AB=CD in different forms to maximize the profit space (the depth of point D

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