dojitrader
Short

Cypher BUT with HUGE Stops . . .

FX:AUDJPY   Australian Dollar/Japanese Yen
79 4 0
Reasonable harmonics for this Cypher , BUT, the stops, when you
look left for resistance areas since the 1st of the year make this
a questionable trade to simply place the stops above X. It would
be very easy for price action to trade into resistance 1st. So,
it seems to me that "smart stops" would really have to go above
94.30 ~~~~~~
I think I'll wait and see if it trades closer to the .886 for lower risk
or maybe, just maybe the candlesticks will shed some light
upon the entry trigger and provide a reasonable stop.
HatZ
2 years ago
This looks like a bear shark completing at 0.886. Trendline hits that area.
Reply
dojitrader HatZ
2 years ago
If this is a shark then what would make it a Cypher ?
Reply
HatZ
2 years ago
There is an overlap between a shark and the cypher. The way I differentiate the two is by looking for the reversal point using an alternative approach. Then I assume its the pattern that completes at the expected reversal point. Anyway, we shouldn't be taking harmonic trades without confirming the completion/reversal using a technique based in another theory.
Reply
dojitrader
2 years ago
There is overlap for sure. I deal with it by calling it a shark if it taps the 1.13 fib ext
of X to A. that being point C.
If it taps the 1.272 but no further than the 1.414 then I look to trade it as a Cypher.
IF, the A to B is at least .382 but no further than .50. And as you suggest it is
always good to confirm point D with support and resistance levels to help
target an entry and reduce risk. I ignore the pattern completely if it does not meet
these 2 basic rules. Now, if I ever see an A to B of, say, .32 with a point C
around 1.33 I'd be interested in looking at the sup/res for point D and
possibly still call it a Shark.
{We traders are a strange lot, aren't we, as soon as we say we won't break
our rules, we find a way to do it with full justification}}
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