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Pattern 14 of 18: all patterns
Classic reversals
  1. Double top and double bottom
  2. Triple top and triple bottom
  3. Head and shoulders
Consolidation breakouts
  1. Ascending triangle
  2. Descending triangle
  3. Symmetrical triangle
  4. Rising wedge and falling wedge
  5. Rectangle
  6. Bull flag and bear flag
  7. Bull pennant and bear pennant
Harmonic patterns
  1. AB=CD
  2. Gartley
  3. Bat
  4. Butterfly
  5. Crab
Smart money concepts
  1. Order block after a break of structure
  2. Liquidity sweep and fair value gap
Session patterns
  1. Opening range breakout
Harmonic patterns  ·  Pattern 14 of 18

Butterfly

Reversal at the PRZ

An XABCD shape with a deep B (about 78.6% of XA) and a D that extends beyond X, between 127% and 141.4% of XA.

What it shows

Unlike the Gartley and the Bat, D goes past X. The pattern describes an overshoot that is expected to reverse.

How the scanner finds it
  • Four confirmed swings X, A, B and C. AB retraces 76% to 81% of XA and BC retraces 38.2% to 88.6% of AB.
  • The PRZ (potential reversal zone) is where two projections overlap: AD at 127% to 141.4% of XA, and CD at 161.8% to 224% of BC. No overlap, no pattern.
PRZXABCDTargetEntryStop134
An idealized drawing. The numbers are the alert stages; the shaded boxes are the textbook stop and target.

How the alerts work for this pattern

  1. 1
    Forming

    C is confirmed. The PRZ is drawn on the chart before price gets there.

  2. 3
    Close to signaling

    Price comes within a third of an ATR of the PRZ.

  3. 4
    Time to act

    Price touches the near edge of the PRZ.

  4. x
    Cancelled

    Price closes beyond C first, or takes more than twice the B to C time.

The textbook trade

Trigger
A touch of the near edge of the PRZ.
Stop
Beyond the far edge of the PRZ, plus half an ATR.
Target
61.8% of the AD leg back.

Things to watch

  • Because D is beyond X, the move into D is often fast. Plan the order before the ready alert.
Where it comes from

Credited to Bryce Gilmore; the ratios used here follow Scott M. Carney, Harmonic Trading, Volume One (2004).

On our charts

Real detections by the scanner on our own price data (2026-08-01 to 2026-10-19), with the alerts it sent. Times are New York time. Some worked and some did not.

BTCUSD15-minute chart2026-10-02Bearish ButterflyReached the target
84290.685136.885983.086829.287675.410-01 21:3010-02 00:0010-02 02:3010-02 05:0010-02 07:3010-02 10:00XABCT 86312.1E 87193.9S 87393.4145
The alerts it sent
  1. 1Forming2026-10-02 07:30 NYX, A, B and C are in; D should end in 87193.9 to 87302.1
  2. 4Time to act2026-10-02 08:45 NYtouched 87193.9: entry 87193.9, stop 87393.4, target 86312.1
  3. 5Result2026-10-02 10:30 NYtarget (+4.42R)
ETHUSD15-minute chart2026-10-01Bearish ButterflyHit the stop
2666.12688.42710.82733.12755.410-01 11:3010-01 13:4510-01 16:0010-01 18:1510-01 20:3010-01 22:4510-02 01:00XABCT 2701.7E 2721.6S 2727.91345
The alerts it sent
  1. 1Forming2026-10-01 22:00 NYX, A, B and C are in; D should end in 2721.6 to 2724.8
  2. 3Close to signaling2026-10-01 22:15 NYclose to the zone at 2721.6
  3. 4Time to act2026-10-01 23:00 NYtouched 2721.6: entry 2721.6, stop 2727.9, target 2701.7
  4. 5Result2026-10-01 23:15 NYstop (-1.00R)

Education, not advice. A pattern describes what many traders watch for; it does not predict what price will do. The textbook stop and target are reference levels, not instructions. Trading involves risk.

Put it to work

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Trading involves risk. This page is education, not advice; examples come from past data.