Bearish Cypher on YESBANK for NSE:YESBANK by nirav5

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We are in the D leg of Potential Bearish Cypher pattern.
The View negates above 1290. If that happens we will have to look for the possibilities of Bearish Shark pattern.
Kindly wait for the price rejection before initiating the trade.

Order cancelled: Yesbank did not show reversal sign.

Comments

Nice & Thanks

AbhishekHSinghCMT

@AbhishekHSinghCMT, Harmonics -too should be confirmed before trading.

AbhishekHSinghCMT

@Abhishek Welcome. Yes that's a handle with care situation.

AbhishekHSinghCMT

@AbhishekHSinghCMT, Sir What could have been reason for the Pattern Fail ? does any retracement is not correct ?

HappyVijay

@HappyVijay, Harmonic patterns work upon Fibonacci ratios. Based upon different ratios different names have been assigned to different patterns. Cypher pattern will get activated normally with 0.786, 0.74, 0.886 of XC leg. Other ways are looking at 1.27, 1.414, 1.618 etc retracements of BC leg. Here Cypher pattern has failed.
Possiblity of Bearish Shark is still there. Without the confirmation of reversal initiating the trade is very risky.

nirav5

@nirav5, I think Point C is formed when prices extend the XA leg by at least 1.272

munna907

@munna907, Yes that is ideal scenario.

HappyVijay

@HappyVijay, Nirav is correct- get the market confirmation & then take the trade in patterns as we become bias to patterns & we want to see it unfolding our way- so, here question of getting correct trade goes into bin as ego replaces- which is dangerous for trading.

What does price rejection mean ?

Basty

@Basty, I mean Price action will stop going above, in other words wait for the bearish candle (sign).
SL would be around 1290. Bearish Cypher is a powerful pattern. If properly activated downward speed would be very fast.
I will update the targets once the reversal point will be identified.