Archive Traders' Glossary Novice Traders' Notebook Products Store. Like the Gartley, it comes in two forms, bullish and bearish.
Gartley setups slant upward, but butterfly setups slant downward.
The bullish butterfly is similar to the Gartley. This results in a point D that is lower than point X, as can be seen in Figure 1. You can compute all the targets in a butterfly setup using the spreadsheet in Figures 2 and 3. I'll step through the creation of the chart pattern and spreadsheet model. Then construct the chart and enter the spreadsheet data as I give it.