AUD/CAD: Possible bullish cypher but beware! Long

Australian Dollar/Canadian DollarFXCM

Description

⋅ Jan 5, 2016 1:16 AM

This is a possible bullish Cypher which could send this pair further up.

We broke the trendine though and AUD looks weak so we could be in for a good pullback beyond the cypher completion point so I'm cautious, tight SL: NOT below X! Take note of this!!

If the uptrend continues from here then 1.0700 is possible, far from that atm though!!
Bearish if this fails, but I'm already short in any case, at least till completion of the cypher! :-)

We'll just have to wait-and-see what happens...

Comments

mendrinvest

⋅ Jan 5, 2016 2:42 AM

B-C Leg didn't hit its 1.27 Extension. Pattern is there but "technically" doesn't qualify. Depending of course on which rules you're using.

KVE

⋅ Jan 5, 2016 7:09 AM

Hi, I have always used 1.13 as a min. requirement based on info I found about the pattern here:
sr-analyst.com/HarmonicHelp/cypher_pattern.htm
forex-tsd.com/forum/trading-systems/graduated/harmonic-trading/1145-harmonic-trading/page297

I actually have a cheatsheet with the picture I found here: forextradingprocess.com/harmonic-patterns/cypher-pattern/

However I have also found other info with your mentioned 1.27 ext. (e.g. asimbhuta.com/my-blog/forex/strategy/the-cypher-pattern/ and also google.be/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwjzsqrKjJLKAhUDbhQKHSuPCE8QFgg1MAM&url=http://www.forexfactory.com/attachment.php?attachmentid=1690095&d=1433530298&usg=AFQjCNE1nfR1QKVYNRlIhKn4D946LzCbKw&sig2=RX64d_L55DdaSpYyAuuDPQ&bvm=bv.110151844,d.d24)

Upon new review of the resources found on the internet I do believe you are right about the min. 1.27 requirement!

If you have info on the original literature where info on this pattern was published please let me know where I can find it (book, article, website...), I would very much appreciate it!!
I have not been able to find the original source on this pattern...