STAGE 1:
THE BULLISH IMPULSE LEG
A bullish impulse leg is a strong move in price action to the upside.
The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.
The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.
STAGE 2:
B LEG RETRACEMENT
Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg.
Take your Fibonacci retracement tool and draw from your X leg to your A leg.
The crucial Fibonacci levels you are looking for are the 38.20% and 61.80%
Price action must at least touch the 38.20% retracement but cannot close below the 61.80% retracement.
As you can see by the illustration, the candle does not need to close below the 38.20% retracement but must at least spike through.
The bullish Cypher pattern will be invalid if price action closes below the 61.80% retracement of the X to A move.
STAGE 3:
C LEG EXTENSION
Once you have identified a valid X to A impulse leg and a B leg retracement,
you are now looking for a valid C leg extension.
Take your Fibonacci extension tool and draw from X to A and then back to X.
The crucial Fibonacci extension levels you are looking for are the 127.20% and the 141.40%
Price action must at least touch the 1.272% but cannot close above the 1.414%.
As you can see by the illustration the candle does not need to close above the 127.20% but must at least spike through.
The bullish Cypher pattern will be invalid if price action closed above the 1.414%
STAGE 4:
D LEG COMPLETION
Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair.
Take your Fibonacci retracement tool and draw from your X leg to your C leg.
You are looking for a 78.60% which will now give you a valid D leg completion of the bullish Cypher pattern.
STAGE 5:
PLACING YOUR TARGETS
When looking to take targets on the bullish Cypher Pattern the first step is to use your Fibonacci retracement tool.
With your Fibonacci retracement tool draw from the C to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%.
To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.
KEY NOTES & RULES:
When trading the bullish Cypher pattern , the pattern is meant to be traded at 78.60% D leg completion only.
If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion.
The power of the pattern comes from converging Fibonacci levels of all points from X to D.
Point B must at least touch the 38.20% retracement but cannot close below the 61.80% from the X to A move.
Point C must touch the 127.20% but cannot close above the 141.4%
Point D is complete when price action touches the 78.60% retracement of the X to C move.
Stop loss must be placed below the X leg structure support.
Target 1 at the 38.20% retracement of the C to D move.
Target 2 at the 61.80% retracement of the C to D move.
CURRENCY PAIR:
This pattern like any other is more profitable with certain currency pairs, you should do your own back testing on this before trading this or any pattern.
Website: www.UKForexSignals.com
Instagram: www.Instagram.com/UK_Forex_Signals
Instagram: www.Instagram.com/Tom_Hall_Official
Twitter: www.Twitter.com/Tom_H_Official
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
THE BULLISH IMPULSE LEG
A bullish impulse leg is a strong move in price action to the upside.
The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.
The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.
STAGE 2:
B LEG RETRACEMENT
Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg.
Take your Fibonacci retracement tool and draw from your X leg to your A leg.
The crucial Fibonacci levels you are looking for are the 38.20% and 61.80%
Price action must at least touch the 38.20% retracement but cannot close below the 61.80% retracement.
As you can see by the illustration, the candle does not need to close below the 38.20% retracement but must at least spike through.
The bullish Cypher pattern will be invalid if price action closes below the 61.80% retracement of the X to A move.
STAGE 3:
C LEG EXTENSION
Once you have identified a valid X to A impulse leg and a B leg retracement,
you are now looking for a valid C leg extension.
Take your Fibonacci extension tool and draw from X to A and then back to X.
The crucial Fibonacci extension levels you are looking for are the 127.20% and the 141.40%
Price action must at least touch the 1.272% but cannot close above the 1.414%.
As you can see by the illustration the candle does not need to close above the 127.20% but must at least spike through.
The bullish Cypher pattern will be invalid if price action closed above the 1.414%
STAGE 4:
D LEG COMPLETION
Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair.
Take your Fibonacci retracement tool and draw from your X leg to your C leg.
You are looking for a 78.60% which will now give you a valid D leg completion of the bullish Cypher pattern.
STAGE 5:
PLACING YOUR TARGETS
When looking to take targets on the bullish Cypher Pattern the first step is to use your Fibonacci retracement tool.
With your Fibonacci retracement tool draw from the C to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%.
To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2.
KEY NOTES & RULES:
When trading the bullish Cypher pattern , the pattern is meant to be traded at 78.60% D leg completion only.
If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion.
The power of the pattern comes from converging Fibonacci levels of all points from X to D.
Point B must at least touch the 38.20% retracement but cannot close below the 61.80% from the X to A move.
Point C must touch the 127.20% but cannot close above the 141.4%
Point D is complete when price action touches the 78.60% retracement of the X to C move.
Stop loss must be placed below the X leg structure support.
Target 1 at the 38.20% retracement of the C to D move.
Target 2 at the 61.80% retracement of the C to D move.
CURRENCY PAIR:
This pattern like any other is more profitable with certain currency pairs, you should do your own back testing on this before trading this or any pattern.
Website: www.UKForexSignals.com
Instagram: www.Instagram.com/UK_Forex_Signals
Instagram: www.Instagram.com/Tom_Hall_Official
Twitter: www.Twitter.com/Tom_H_Official
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.