Bear Cypher Pattern on BTCUSD BTC Bitcoin

27 Apr 2018

Criteria for the Cypher pattern

• The Cypher pattern starts with a market price that establishes the X and A points
  
• Point B retraces to 0.382 – 0.618 Fibonacci level of the leg XA
  
• Point C is formed when prices extend the XA leg by at least 1.272 or within 1.130 – 1.414 Fibonacci extension level
  
• Point D is formed when it retraces 0.786 Fibonacci level of XC
  
• Note: I also used the 78.6 fib of XA in confluence with the bullet above to create a "zone" for entry
  

NOTE: The finish of the pattern matches perfectly with a high volume node which will probably serve as resistance