If this cypher pattern completes at the 786, we will look to enter this trade for targets indicated. The X leg is at a nice level of structure so a good place to short.
Comments
kataate
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My C leg is the 127 extension of the AB, this seems to be hitting 141.8 extension of the AB extension which invalidates my cypher but its a good opportunity for those who trade cyphers differently
Akil_Stokes
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141.8 extension of AB? Interesting, never heard of that before. what made you decide to look at that particular extension during you backtesting. Not judging, just curious
kataate
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haha...typing error Akil Meant 1.414
Akil_Stokes
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still curious about the 141.4 of AB?
kalong
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i thought for cypher, the C pt cannot close beyond 1414 of XA but must at least touch 1272. Btw I am using fib retracement to measure the extension.
Akil_Stokes
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you're correct, I was wondering about how you were using the AB like you mentioned? Unless that was a typo
ninjabenja
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Can you help me understand your analysis on the pattern as you have it defined? It doesn't appear to meet the criteria for a valid cypher. Here is your chart with what is widely accepted as the appropriate Cypher pattern requirements:
JasonGraystone
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Hey, Thanks for the comment. I'm afraid you have either been misinformed on the rules of a cypher pattern or you have your Fib Levels set incorrectly.
Rules as follows;
Once the initial X t A Leg is identified, we can then look for the B leg completion. In order for the B leg to be valid, the retracement must at least touch the 382 but not CLOSE past the 618.
The C Leg is considered valid as long as it at least touches the 1.27 extension from X to A but must not close past the 1.414. In this case, the 1.414 extension is at 0.9566 and the lowest candle closes at 0.9567 therefore it is valid.
For a cypher completion, the D must complete at the 786 retracement of X to C.
It looks like your 1.414 is not set correctly.
I hope this helps.
JG
ninjabenja
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Thanks for correcting my correction guys. I'm a victim of a tool which doesn't function properly for the Cypher, but it would seem we should be able to create one that works as it should.
Akil_Stokes
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I've seen this before with the "pattern drawing" tool here on trading view. When used it doesn't measure fibs correctly. The 1.414 that is showing, isn't a 1.414 from X to A rather from B to C it looks like