We've all been bearish on NZDUSD and the Trade Balance came out negative today. It's especially a bad news for New Zealand which it's economy is based on exports.
The price seemed to ignore the bad news and correct its way higher. And now it's came to a resistant area which forms a Cypher Pattern.
I usually don't trade this pattern because I doubt its technical basis, but this one is backed by fundamentals so let's give it a try.
excellent work. one of the only cyphers that iv seen that actually worked out.
DavoodWadi
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Thank you UtterOnce.
yongjui.foo
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U are right eventually, the price go down. However, i am wonder why the point D did not exceed point B, but still consider as a qualified Cypher pattern?
DavoodWadi
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The most important criteria is that the CD leg retraces 78.6% of the XC leg.
And again, as in the bat pattern, We don't have any rules against it ;)
yongjui.foo
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oic. i was wrong. I thought D should be 0.786 of XA. So, point D in shark pattern also have to between 0.886 to 1.13 of XC, right?
DavoodWadi
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In the Shark pattern it should Not be Between 0.886 and 1.13.
It should be exactly 0.886 Or exactly 1.13.
yongjui.foo
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btw, the point B is almost 0.786 of XA. Why would u consider it is a valid cypher pattern?
DavoodWadi
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B actually spiked up to the 0.786 retracement but the real stable price was sitting in the 0.618 (Close price)