Bearish Cypher Pattern Spotted on CAD/JPY
In the four-hour timeframe of the CAD/JPY chart, a bearish Cypher pattern has formed. This pattern is a relatively advanced harmonic pattern that can be used to identify potential trend reversals.
The Cypher pattern is made up of five points, labeled X, A, B, C, and D. In this case:
Point X is the starting point of the pattern.
Point A is a retracement of XA between 38.2% and 61.8%.
Point B is a projection of XA that extends 127.2% to 141.4%.
Point C is a retracement of XC between 78.6% and 88.6%.
Point D is the endpoint of the pattern.
In the CAD/JPY chart, the Cypher pattern looks like this:
Point X is at 106.374.
Point A is at 108.258.
Point B is at 107.219.
Point C is at 108.278.
Point D is at 106.853.
As you can see, the Cypher pattern has all of the characteristics of a bearish pattern. The price has formed a double top at points B and C, and it has broken below the neckline of the double top at point D. This suggests that the price is likely to continue to fall in the short term.
Trading the Cypher Pattern
If you are looking to trade the Cypher pattern, there are a few things to keep in mind. First, the pattern is not always accurate. It is important to use other technical indicators to confirm the signal. Second, the pattern can take some time to play out. It is important to be patient and wait for the price to reach your target before entering a trade.
Here are some specific trading ideas for the Cypher pattern on the CAD/JPY chart:
Short entry: You could enter a short trade at point D, with a stop loss above point C. Your target could be at the 61.8% retracement of CD, which is at 106.214.
Disclaimer
Please note that this is not financial advice. I am not a financial advisor and you should always do your own research before making any investment decisions.
The Cypher pattern is made up of five points, labeled X, A, B, C, and D. In this case:
Point X is the starting point of the pattern.
Point A is a retracement of XA between 38.2% and 61.8%.
Point B is a projection of XA that extends 127.2% to 141.4%.
Point C is a retracement of XC between 78.6% and 88.6%.
Point D is the endpoint of the pattern.
In the CAD/JPY chart, the Cypher pattern looks like this:
Point X is at 106.374.
Point A is at 108.258.
Point B is at 107.219.
Point C is at 108.278.
Point D is at 106.853.
As you can see, the Cypher pattern has all of the characteristics of a bearish pattern. The price has formed a double top at points B and C, and it has broken below the neckline of the double top at point D. This suggests that the price is likely to continue to fall in the short term.
Trading the Cypher Pattern
If you are looking to trade the Cypher pattern, there are a few things to keep in mind. First, the pattern is not always accurate. It is important to use other technical indicators to confirm the signal. Second, the pattern can take some time to play out. It is important to be patient and wait for the price to reach your target before entering a trade.
Here are some specific trading ideas for the Cypher pattern on the CAD/JPY chart:
Short entry: You could enter a short trade at point D, with a stop loss above point C. Your target could be at the 61.8% retracement of CD, which is at 106.214.
Disclaimer
Please note that this is not financial advice. I am not a financial advisor and you should always do your own research before making any investment decisions.