lukeboland
Long

EURO CYPHER PATTERN (How-to)

FX:EURUSD   Euro Fx/U.S. Dollar
Hi Trader,

Here we have a bullish cypher pattern with d completion at 1.05540. I have my orders in ready to go. Read below to find the trade details and a step-by-step process of how you can trade the cypher pattern .

Entry: 1.05550
Stop: 1.05080
Target 1: 1.06010
Target 2: 1.06310

1) Identify the X leg by looking for an 'impulse', or in other words a strong move in either direction
2) Take your fibonacci tool and draw from the the low (X point) to the high (A point) of the impulse move
3) If price retraces and at least touches the 38.2%, and does not close below the 61.8% of the X to A move then it becomes our B point
4) With the fibonacci tool drawn from the X to A, we now look for an extension of price (a move in the original direction) to at least touch the 127.2% and not close above the 141.4% fibonacci extension. This is the C point
5) We are now looking for the D point and the pattern will be complete. Grab your fibonacci tool and extend it to the highest high of the C point. The D point is a 78.6% retracement of the X to C
6) If price retraces to D the pattern is complete and we have a valid trading opportunity

Harmonic patterns will make you money IF TRADED CONSISTENTLY, just like any strategy that has an edge in your favour. The discipline to take every trading opportunity is what separates the winners and losers in this business.

If you found this useful leave a like, it motivates me to keep posting for you!

Good trading,

Luke
Ebicer
3 days ago
Thx for your explanation. It would be nice if you can show fibonacci lines too.

It would make much more sense for newly traders like me.

Btw there was a bullish pattern explanation by Tomhall a day ago.

There are difference between yours and his method. Can you evaluate both methods if you have the time?

Here is the link:
5 EASY STEPS TO TRADE THE GARTLEY PATTERN

+1 Reply
lukeboland PRO Ebicer
3 days ago
@Ebicer, Hey thanks for the feedback, I will highlight the fibonacci levels in future. Appreciate it!

It's good that you found Tom Hall's page, he is very consistent with posting and he explains his setups well.

As for Tom's post, the pattern he is teaching there is the Gartley Pattern, which is distinctly different to the Cypher Pattern.

Both are harmonic price patterns, however the fibonacci ratio combinations in each are different.

I trade the Gartley Pattern, the Bat Pattern, and the Cypher Pattern.

A useful learning exercise is to scroll back on a chart and practice identifying the patterns.

There are two books you should read if you're serious about learning to trade pattern, I found them very useful.

1) Trade What You See - Larry Pesavento and Leslie Jouflas

2) Harmonic Trading - Scott Carney

Best,

Luke
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