FINNIFTY (CNXFINANCE) - A BEARISH CYPHER PATTERN FORMED. NSE:CNXFINANCE
❇️Harmonic chart pattern: BEARISH CYPHER PATTERN
👉🏻The Cypher pattern is one of the most profitable harmonic patterns and is useful for risk management, because of the large success rate. Traders can minimize losses if they follow the Cypher trading rules and meet the profit target.
🚀How to use
❇️The Cypher harmonic pattern is a trading strategy that uses Fibonacci numbers to identify turning points in geometric price patterns. It can help traders predict future movements, determine when trends will reverse, and decide when to buy and sell. Here are some steps for using the Cypher pattern:
❇️1. Draw the patterns
👉🏻Start with a bullish or bearish impulsive move from point X to A. Then, use a Fibonacci retracement tool to find point B between 38.2% and 61.8% of XA, without closing past 61.8%. Next, use a Fibonacci expansion tool to find point C between 127.2% and 141.4% of the move from X to A, without closing past 141.4%. Finally, use a Fibonacci retracement tool to find point D by moving from X to C and reaching the 78.6% region. You can also use a Fibonacci expansion tool to find point D by moving from B to C and landing between 127.2% and 200%.
❇️2. Enter the pattern
👉🏻Traders can enter a Cypher pattern by setting a limit order at the 78.6% level or using a market order after the price starts to reverse.
❇️3. Set stop losses
👉🏻For a bearish Cypher, place stop losses just above point X. For a bullish Cypher, place stop losses just below point X.
❇️4. Set take profits
👉🏻Draw a Fibonacci extension from point C to point D and set multiple take profits. For example, you could set the first take profit at Fibonacci one, the second at 1.272, and the third at 1.618. You can break into the trade when any of the take profits are hit. Many traders partially close their position at point A, but you can also choose point C for a more aggressive approach
ENTRY STATUS: ACTIVE ✅
TARGET 23440-23140-22555 (as per this harmonic chart pattern)
SL 23670
🚀Happy trading 🫡
👉🏻 @thetradeforecast🇮🇳
