Guys, a potential cypher advanced
formation is on my radar todar. Cypher
is not a harmonic pattern
. It doesn't have a compulsory ab=cd
calculation to define a potential reversal zone. Ab=cd
movement is what makes a pattern harmonic
. Actually, these types of movements are called harmonic
. Unlike harmonic patterns
is traded agressively with limit orders and embedds the target adjustment rule. The idea of the pattern presupposes that price has a higher probability to hit the first target before it break X. You should have solid rules for what is called "to break a level". The majority of traders agree that a breakout is a preiceaction when a full candle body of an average sized candle appears beyond the level (not only canlde-close but candle open as well). You should also have a rule for the case when the level is broken by a wide range candle. Will you wait for it to close if it travels too far into negative territory? In this case professionals agree that an ATR beyond the level would be enough to confirm the breakout.
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