It can be said that the development of the butterfly form to this day is not the work of one person, but has evolved and been optimized from multiple angles. Some adjustments and changes have also been made to the basic principles of the butterfly shape. Especially after point C is confirmed, the location of point D can be effectively predicted. The current application has good results in actual combat. The author realizes that the butterfly shape described in "Harmonious Trading" (based on the Fibonacci Magic Sequence as the structural basis) can be regarded as a product of the natural laws of things. Ideally, if we confirm X and A in the trend chart , B, C, and D points, we can determine the reversal trend after point D. The combination of callback ratios between points X, A, B, C, and D must satisfy a specific Fibonacci sequence combination. Of course, in the actual trend, the morphological characteristics of the trend and the magnitude of the correction will always be infinitely close to the ideal state. In this way, we have to work hard on the selection of points. The following are the various forms of the butterfly and the corresponding Fibonacci retracement ratios under ideal conditions. I hope investors will keep this in mind. In the actual trend, there will inevitably be slight deviations in the correction amplitude between points, and this combination of deviations will lead to differences in the selection of the butterfly pattern. This requires a lot of analysis practice to find the analysis rules that suit you.

Due to the existence of the butterfly pattern, in many cases conventional analysis methods such as trend line (extension line of X-B) support and resistance, horizontal support and resistance (horizontal price of points A and B) have become less important. There are many such examples. When you have been worried countless times that your commonly used indicators have failed and you are unable to analyze the trend, maybe the butterfly pattern is your life-saving straw. Previously, we mainly introduced the historical development process of butterfly theory and the proportional relationship between various forms, and also conducted an example analysis of BAT forms. Through the previous lecture, we have a general understanding of the butterfly principle. What we need to do after that is to conduct a large amount of analysis and research around the various forms of the butterfly principle, combined with actual charts, in order to strengthen investors' grasp of the forms.