Most popular position for the butterfly pattern is the end of a trend. We all like to catch end of wave 5, and butterfly simplifies it. Pattern forms on Wave4 and Wave5. Most of butterfly examples you will find on the www.TradingArsenal.com Forum are for the reversal butterfly scenario. Like this one here:
Continuation butterfly instead happens at the end of correction:
For more on the butterfly pattern visit: Butterfly pattern - Table of Content on the TradingArsenal Forum.
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