Butterfly Pattern — what it is and how to use it in trading
Definition
The Butterfly pattern is a harmonic XABCD figure where point D extends beyond point X (an extension), rather than retracing back inside the X-A range like a Gartley or Bat.
How it works in the builder
butterfly_bullish/butterfly_bearish use left/right/tolerance parameters — the same swing-confirmation mechanism as the other harmonics, but with ratios that define an extension beyond X rather than a retracement toward it.
What it looks like on the chart
The figure looks visually more "stretched" than a Gartley/Bat — the final C-D leg travels past point X, so point D sits outside the original X-A range.
Typical use
Point D is used as a reversal zone after an extended move — the idea being the market has exhausted momentum on the breakout past the prior range. It is combined with oscillators or other harmonics for filtering.
Common pitfalls
Because point D forms beyond X, recognizing a Butterfly requires a stronger impulsive move than a Gartley/Bat — on a quiet market the figure is found less often. As with the other harmonics, the shape alone does not guarantee a reversal.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
Butterfly Bullish
Block variants
Butterfly Bearish