AUDCAD: A Cypher Within A Cypher

Last week we put this potential bearish Cypher pattern (left) on our radar, but because the risk was so large, it wasn’t a trade that I was able to take. Whenever this happens instead of calling it a day and deleting my charts, I always look for secondary reasons to enter. After blowing past the “D” completion the AUDCAD has found resistance at our “X” structure and has slightly retraced. As I look down to the 15 minute chart in preparation for today’s Live Trading session, I noticed a potential Cypher pattern within the bigger Cypher pattern that I can use to be involved in the trade. No it won’t be the same trade because going from 4 hour to 15 minute is just too large of a jump to expect the same results as far as target location, but it does give me a reason to get involved short at a level that I’m fond of.
With patterns like this, stops are always beyond the X leg and initial targets are looking for a 38.2 and 61.8 retracement. Of course extended targets wouldn’t be a bad idea in this scenario as well.


Akil Stokes
Chief Currency Analyst
www.TradeEmpowered.com


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