CYPHER PATTERN EXPLAINED - USING TRADINGVIEW TO YOUR ADVANTAGE
Hi All, I wanted to share this with you explaining Cypher Pattern.
On the left are steps required for valid Cypher, and the right Pane is the Stops and Targets
First I will explain the numbers I have noted on the charts, this is a standard procedure I follow
1. Recognized Structure - Potential X to A leg
2. A Leg is now formed
3. B Leg and lets see how far it retraces using the Fibonacci Retrace Tool - we have a potential Cypher is price falls
4. Now we have the criteria for the Cypher
5. At this point I have my 78.6% in place and I know my entry level - D completion - Price still has not hit the entry
so orders are resting at that level
6. Stops are immediately placed
7. After entry at 5 - I have my targets on screen ready to be adjusted at D completion - Target 1 Adjusted
8. Target 2 is adjusted when we have the reversal
9. Target 1 Has been hit so we want to move stops down
10. Second Stops is moved down
11. Stop is placed at break even which is our entry level 78.6% - we are now safe and covered
on our second target.
12. Second Target achieved
13. This is not on screen but I will also trail stops after we have a Target 1 hit, this will be determined on price action. If we hit the Target 1 level then we come back to retest our entry point. If second Target is not stopped for break even and price falls back towards Target 2, I will wait for a break below close below so LLLC or HHHC depending on bullish or bearish, my trail stop would be 5 pips above the last structure level set to trail.
Based on how price action works and structure levels which we know are key to trading, this action of price generally indicates a drop, and setting the trail to this level protects me with gaining the maximum profits if we just miss the Target 2 and if I am sleeping at the time. How many times would you see Target 1 hit then price falls to just past the 50% then back to stop out for break even.
Trading View has multiple tools to allow you to run very fast analysis and also publish your idea's. Learn to use them to your benefit
The XABCD and CYPHER makes it a lot faster to publish our idea's rather than drawing triangles, it also shows you
the ratios on screen so you dont need to draw Fib's - in saying this I always like to double check and its a habit to also have the Fib's on screen with a straight entry line.
Good luck traders and any questions or explanations you want me to publish, send request and I will do my best.
Dont shoot for the moon take profits and dont be greedy because it will turn into more loss than gain.
On the left are steps required for valid Cypher, and the right Pane is the Stops and Targets
First I will explain the numbers I have noted on the charts, this is a standard procedure I follow
1. Recognized Structure - Potential X to A leg
2. A Leg is now formed
3. B Leg and lets see how far it retraces using the Fibonacci Retrace Tool - we have a potential Cypher is price falls
4. Now we have the criteria for the Cypher
5. At this point I have my 78.6% in place and I know my entry level - D completion - Price still has not hit the entry
so orders are resting at that level
6. Stops are immediately placed
7. After entry at 5 - I have my targets on screen ready to be adjusted at D completion - Target 1 Adjusted
8. Target 2 is adjusted when we have the reversal
9. Target 1 Has been hit so we want to move stops down
10. Second Stops is moved down
11. Stop is placed at break even which is our entry level 78.6% - we are now safe and covered
on our second target.
12. Second Target achieved
13. This is not on screen but I will also trail stops after we have a Target 1 hit, this will be determined on price action. If we hit the Target 1 level then we come back to retest our entry point. If second Target is not stopped for break even and price falls back towards Target 2, I will wait for a break below close below so LLLC or HHHC depending on bullish or bearish, my trail stop would be 5 pips above the last structure level set to trail.
Based on how price action works and structure levels which we know are key to trading, this action of price generally indicates a drop, and setting the trail to this level protects me with gaining the maximum profits if we just miss the Target 2 and if I am sleeping at the time. How many times would you see Target 1 hit then price falls to just past the 50% then back to stop out for break even.
Trading View has multiple tools to allow you to run very fast analysis and also publish your idea's. Learn to use them to your benefit
The XABCD and CYPHER makes it a lot faster to publish our idea's rather than drawing triangles, it also shows you
the ratios on screen so you dont need to draw Fib's - in saying this I always like to double check and its a habit to also have the Fib's on screen with a straight entry line.
Good luck traders and any questions or explanations you want me to publish, send request and I will do my best.
Dont shoot for the moon take profits and dont be greedy because it will turn into more loss than gain.
