What is Cypher pattern ?
Cypher Pattern is a harmonic pattern that has the highest winning rate.
It is a Geometrical pattern, hence make sure it matches all the fibonacci
rules, which are as follows.
AB= 0.382 to 0.618 retracement of the XA swing leg;
BC= extend to minimum 1.272 and maximum 1.414 of the XA swing leg;
CD= retrace to 0.786 of the XC swing leg;
How to Trade Cypher Pattern
Buy when the CD leg of pattern reaches .786 retracement .
Stop loss is to be placed at x point of low.
Target is point A, or .50 or .618 retracement of CD leg.
So here we have an example of Cera Sanitary ware, which has formed cypher pattern on its weekly chart and has reached .786 retracement of XC leg. ie. 2300.
So as per this cypher pattern strategy, buy can be initiated near 2300 levels for a target of 3100 or 3300 levels, with stop at x point. i.e. 1980.
RISK POINTS: 320 POINTS
REWARD POINTS : 800, 1000 POINTS
Since Cypher Patten is a reversal pattern, so trade with strict stop loss.
NOTE: Price action near reversal zone - Bullish engulfing candle has been formed in the reversal zone..
Cypher Pattern is a harmonic pattern that has the highest winning rate.
It is a Geometrical pattern, hence make sure it matches all the fibonacci
rules, which are as follows.
AB= 0.382 to 0.618 retracement of the XA swing leg;
BC= extend to minimum 1.272 and maximum 1.414 of the XA swing leg;
CD= retrace to 0.786 of the XC swing leg;
How to Trade Cypher Pattern
Buy when the CD leg of pattern reaches .786 retracement .
Stop loss is to be placed at x point of low.
Target is point A, or .50 or .618 retracement of CD leg.
So here we have an example of Cera Sanitary ware, which has formed cypher pattern on its weekly chart and has reached .786 retracement of XC leg. ie. 2300.
So as per this cypher pattern strategy, buy can be initiated near 2300 levels for a target of 3100 or 3300 levels, with stop at x point. i.e. 1980.
RISK POINTS: 320 POINTS
REWARD POINTS : 800, 1000 POINTS
Since Cypher Patten is a reversal pattern, so trade with strict stop loss.
NOTE: Price action near reversal zone - Bullish engulfing candle has been formed in the reversal zone..