Hi All, here we have a Bearish Cypher - how ever I do not think we will see this get here, I think we will break past the C Leg which will invalidate this pattern. We may test the C Leg and bounce back before continuing to the downside. I have 3 or 4 key levels that I will be watching price action along with RSI and some other filters.
We have 141 and 127 FIB Ext Confluence and also close to the 81.0000 even number. If we continue straight down and miss these levels I will be very interested to see what happens at the Major Support Blue Lines - confirmation from HTF these are respected levels. Happy Trading
Hi Guys, apologies for not putting the risk reward, entries, stops and target levels on this cypher pattern or most charts. As we all know identifying patterns and putting in standard ratios for our targets is different for everyone depending on your rules of engagement, hoping you all stick to your rules and trade plan. Standard T1 and T2 will be 38.2% retrace from C-D completion - if D doesn't complete at the 78.6% from X-A we all know the market can stop on the dime or continue closer to the X leg - which means we move our T1 and T2 along until D completes. Remember structure leaves clues and we also take into account T1 and T2 with Fib and Structure - after we have D completion and we make the 38.2% retrace then stops are moved to break even and hopefully we hit our T2.
Depending on your back testing results we also find that stop placement varies from pair to pair - some pairs require forward order entry - stops could be anything from using a standard 113% fib EXT to an ATR based stop. Remember stick to your rules and as always trade your plan. We don't know what the market will do we can only identify predict decide and execute, we analyze the market and use as many tools as we have and make our decisions based of technical analysis. We put ourselves in the highest probable chance of a winning trade, if it is a losing trade and we follow our plan and rules then it is still a winning trade. Thanks @ninjabenja and @Nico_Muselle for providing feedback - I will put standard ratio's for entires targets and stops for the patterns in future.
Oztrade
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61.8% for T2
ninjabenja
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For those who don't know ( and so that we can make this chart suggested) here are the actual levels for the potential Cypher pattern @Oztrade has identified above. For more information on Cypher requirements take a look at this post from @Nico_Muselle.
Depending on your back testing results we also find that stop placement varies from pair to pair - some pairs require forward order entry - stops could be anything from using a standard 113% fib EXT to an ATR based stop. Remember stick to your rules and as always trade your plan. We don't know what the market will do we can only identify predict decide and execute, we analyze the market and use as many tools as we have and make our decisions based of technical analysis. We put ourselves in the highest probable chance of a winning trade, if it is a losing trade and we follow our plan and rules then it is still a winning trade. Thanks @ninjabenja and @Nico_Muselle for providing feedback - I will put standard ratio's for entires targets and stops for the patterns in future.