After seeing this for a while now and having a discussion with one of the moderators on this site, I wanted to clarity something about the . Typically I don’t like to comment on how other traders are trading but seeing how our vice president is the founder of it, I’m comfortable correcting commenting on this particular setup and hopefully the following can cut down on the amount of pattern recognition errors.
When drawing out the pattern please make sure to use the TOOL and NOT the pattern drawing tool in order to project your “C” leg. The levels that you will see using the pattern drawing tool IS WRONG (as far as which extension it measures).
As you can see when using the pattern drawing tool a 1.564 is projected (looking like it pulls the extension from a B-A inversion). However, when using the tool from X to A and back up to X we have a 1.272 which is the needed min requirement for the "C" leg
I really hope this helps with some of you who have been confused when drawing this out.
Take care traders
Chief Currency Analyst at http://www.TradeEmpowered.com
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I don’t trade the Cypher pattern myself, but if the min requirement for its C point is a 1.272 extension of the XA leg, then indeed the fib ratio on the AC line cannot be used for that (since it does not relate to that leg) and applying the fib extension tool to the XA leg would do the job. Thanks for clearing this up :)