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UPDATE #2: AUDUSD - Cypher TP1 Hit (+35 pips). So Now What?

FX:AUDUSD   Australian Dollar / U.S. Dollar
After hitting on the Gartley for a combined +106 pips, the cypher has hit TP1 for another +35 pips. Now I am holding SHORT for TP2 to hopefully bag another 58 pips.

Before I get into why, let's put things into some context. The way I trade is to always know what is happening overall, i.e., the BIG picture. Right now, this pair is in the consolidation phase after finishing a very nice, long impulse phase down. Now, knowing and expecting a consolidation wave, I start looking for back-to-back patterns because that's when you get them: in a consolidation. Advanced patterns work exceptionally well during consolidation. The consolidation wave this pair is in COULD BE unfolding in a ABCDE symmetrical triangle pattern . This is not yet confirmed though I was able to locate the possible upper and lower converging trendlines . We'll see if they hold up.

So back to the patterns on my chart. The just finished Gartley pattern traced out the wave B of this possible ABCDE triangle and sent prices up in a wave C. The just filled beairsh cypher traced out the wave C and now after being filled could be sending prices back down in a wave D. Now I have identified a POTENTIAL bullish cypher that also just happens would be filled right at/near the lower trend line of this converging triangle pattern . Does this give more confidence to the fact that this consolidation wave is unfolding in an ABCDE triangle? You be the judge. I'm just booking pips! But knowing this simple fact will allow you to better identify the patterns and also the trading opportunities.
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Sorry I meant the C leg of your cypher, sorry can't post a chart right now because I'm at work. Quite often though I find my charts can differ a little to tradingview charts. Don't get me wrong though im not knocking your post, it is a great post.
Reply
I see what you are referring to. It's a valid cypher in that prices never closed above the 1.414. Since Jason Stapleton is the one who discovered the cypher, I just follow his rules. He states that "the C point remains valid as long as there is at least a 1.272 extension of XA and there is not any candle close beyond the 1.414 extension of XA". But thanks for bringing that up though to keep me on my toes! I try my best to make sure all patterns I post are valid since I'm making my trades public and I know some people may folow my trades. I don't want to be feeding bad information.
+1 Reply
Interesting, on my charts has the C leg blowing out past the 161%, all the best though with the trade.
Reply
Not sure what C leg you are referring to. Can you post a chart?
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