The Cypher was discovered by Darren Oglesbee and though it is technically an advanced pattern formation, it is often associated with and traded alongside harmonic patterns. It has specific Fibonacci measurements for each point within its structure. The B point retracement of the primary XA leg lies between 0.382 and 0.618, the C point should be a 1.272 to 1.414 projection of the primary XA leg and the D point should be a 0.786 retracement of XC. The first target would be the 382 retracement of CD and the second target the 618 retracement of CD.
The stop would go beyond the next structure support / resistance beyond the X-point. Conservative traders may look for additional confirmation before entering a trade, for instance an aligning RSI value or a specific candlestick pointing at a reversal. The Cypher Pattern can be either bearish or bullish. TradingView has a smart Cypher Pattern drawing tool, created especially for this popular pattern. Please note that the ratio line between the A and C points represents how far C extended the XA leg. The ration line between the X and D points represents how far D retraced the XC leg.
The price can shoot like an arrow for bulls eye.
Yesbank Double Cypher pattern, Targets and stoploss on chart.
Keep a check on bank nifty levels , may retest the entry levels but double bullish cypher will play it's role.
Stoploss on closing basis, only short term targets mentioned, it may go far beyond after a bit retracment.
May retest 300 levels before ...
Long trade will be opened above 345 for 355-362 zone target.
A tighter stop could be below 336 but the pattern stop is below 325.
If stock falls instead of opening long trade above 345, sub-patterns can be seen on lower TF for better entries.
There is one more reason besides cypher that I am looking for pullback? The hint is in the chart.
Trade only if you can ...
IDFC has been moving in a falling wedge since 2018, currently testing the upper edge. Awaiting a breakout/reversal . ALso a possible Cypher in the making.
VEDL in its ups and downs this year, completed the Gartley. Currently testing a sup/resistance line with a lot of dojis and hammers and stars.. If it happend to reverse, it can complete the Cypher. But it will take a few too many months.
There is a bullish cypher which is hiding in the cloud.
Risky Traders
Buying in the range 595-597 with strict stops below 595 for target 610-615 & if any resistance seen in 615-617 -can be seen as selling opportunity for target 600-590 -580 later
Safe Traders
Buying above 607 for 610-615 & if any resistance seen in 615-617 -can be seen as selling opportunity ...
GBPJPY pair forms negative bias to go down and stochastic level also shows that overbought level
and another confirmation of Bearish divergence makes the pair will down today & tomorrow
The C point reversal is not yet complete and confirmed, unless which happens, this structure is impossible to be formed
Although the C point has been halted at support levels...and with a bullish divergence at hand, there might be a possibility..
Disclaimer... not an investing/trading recommendation
