EURUSD 1H CYPHER HARMONIC PATTERN STRATEGY
The Cypher Pattern Trading Strategy will teach you how to correctly trade and draw the cypher pattern. More, you can use the cypher harmonic pattern on its own and have a profitable Forex trading strategy. It’s no mystery that geometric patterns can be found in the Forex price chart and the cypher pattern is a very good representation of that. The Cypher pattern forex is part of the Harmonic trading patterns and is the most exciting harmonic pattern as it has the highest winning rate.
In order to better identify the cypher pattern forex and to be able to draw cypher patterns, you’ll have to use the Cypher Pattern Indicator on your left of your TradingView chart.
In the harmonic pattern world, the Cypher pattern forex is a four leg reversal pattern that follows specific Fibonacci ratios. The Cypher pattern forex appears less frequent than other harmonic patterns because it’s hard for the market price to satisfy such rigid Fibonacci ratios. The Cypher pattern forex needs to satisfy the following Fibonacci rules.
AB 0.382 to 0.618 retracement of the XA swing leg
BC extend to minimum 1.272 and maximum 1.414 of the XA swing leg
CD retrace to 0.786 of the XC swing leg
The first rule of the Cyper pattern Forex is the retracement from X up to A has to come down and touch the 0.382 Fibonacci ratios but can’t close below the 0.618 Fibonacci ratios. Between the 0.382 and 0.618 Fibonacci retracements of XA swing-leg, we have our third point of the Cypher pattern forex labeled B.
The next rule of the Cypher pattern forex is a Fibonacci extension of the XA leg that comes in 1.27 but it doesn’t exceed the 1.414 Fibonacci ratios, this point of the move is labeled C and completes the BC swing-leg of the Cypher pattern forex.
The final leg of the Cypher pattern where our orders will be executed, which is at the finishing point D. The point D is located at the 0.786 Fibonacci
retracements of the entire move started from X up to C.
Buy with a market order at the opening candle preceding the completion of the D point at 0.786 Fibonacci retracement of the XC leg. Once the market touches the 0.786 level we assume that wave D is in place, because we can’t control how far the market it will go. We’re only concerned for the Fibonacci ratios to be satisfied.
Place Stop Loss above wave X
Take Profit - The Cypher pattern has a conservative take profit target. We want to take profits once we reach the point A of the pattern. Or we ran a fib and have a target profit zone between 38.2% and 61.8% fibs.
If you have any questions or want chart examples just PM me and I will be happy to be of help.
In order to better identify the cypher pattern forex and to be able to draw cypher patterns, you’ll have to use the Cypher Pattern Indicator on your left of your TradingView chart.
In the harmonic pattern world, the Cypher pattern forex is a four leg reversal pattern that follows specific Fibonacci ratios. The Cypher pattern forex appears less frequent than other harmonic patterns because it’s hard for the market price to satisfy such rigid Fibonacci ratios. The Cypher pattern forex needs to satisfy the following Fibonacci rules.
AB 0.382 to 0.618 retracement of the XA swing leg
BC extend to minimum 1.272 and maximum 1.414 of the XA swing leg
CD retrace to 0.786 of the XC swing leg
The first rule of the Cyper pattern Forex is the retracement from X up to A has to come down and touch the 0.382 Fibonacci ratios but can’t close below the 0.618 Fibonacci ratios. Between the 0.382 and 0.618 Fibonacci retracements of XA swing-leg, we have our third point of the Cypher pattern forex labeled B.
The next rule of the Cypher pattern forex is a Fibonacci extension of the XA leg that comes in 1.27 but it doesn’t exceed the 1.414 Fibonacci ratios, this point of the move is labeled C and completes the BC swing-leg of the Cypher pattern forex.
The final leg of the Cypher pattern where our orders will be executed, which is at the finishing point D. The point D is located at the 0.786 Fibonacci
retracements of the entire move started from X up to C.
Buy with a market order at the opening candle preceding the completion of the D point at 0.786 Fibonacci retracement of the XC leg. Once the market touches the 0.786 level we assume that wave D is in place, because we can’t control how far the market it will go. We’re only concerned for the Fibonacci ratios to be satisfied.
Place Stop Loss above wave X
Take Profit - The Cypher pattern has a conservative take profit target. We want to take profits once we reach the point A of the pattern. Or we ran a fib and have a target profit zone between 38.2% and 61.8% fibs.
If you have any questions or want chart examples just PM me and I will be happy to be of help.
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