GBP/JPY - Cypher Pattern

FX:GBPJPY   British Pound / Japanese Yen
963 4 22
On the GBP/JPY             4h chart we have a potential long opportunity at the D leg completion of a Cypher Pattern .

The price reversal zone is between 183.065 & 181.840
We have two strong psychological whole number at 183.000 & 182.000 which will also be a key area to watch.
The PRZ zone is only a guideline of where we will be paying attention for trade setups and opportunity's.

Potential targets for the Cypher Pattern placed at the .382% and .618% retracement of the C to D move.
Stop loss would be placed below X leg structure support .


Learn To Trade The Cypher Pattern .
Hi Tom,

I hope you are well.

About a month ago you posted some explanations of how to trade the Bat, Gartley and Cypher patterns as above (these were some of the simplist and therefore BEST explanations I have seen).

These drawings inspired me to learn these patterns, it is my intention to start with the Cypher pattern on a 4 hour chart of the GBPUSD, next week and to start back testing the last 5 years, then trading this pair whilst moving onto the EURUSD etc. (any advise you can give as to this process, would be greatly appreciated)

I am having a small problem though, and I hope you are able to assist me - I cannot find a source for the following information :

How do I identify the impulse leg i.e. the XA leg?

What constitutes a perfect impulse leg?

What is critical in an impulse leg?

Is there any other information I need, but am either, too ignorant or naive to ask?

Your assistance will be greatly appreciated.

Kind Regards

(South Africa)
Hi Tom,

Like Stilo4 i am having difficulty seeing the 1.272 - 1.414 extension zone.

When doing a fibonacci extension you need three points, swing low @ X, swing high @ B, then back down to the retracement zone of the X - A leg.

it looks like you bring the third leg of the fibonacci extension all the way back to the x leg?

Is there different ways of drawing fib extensions?

I only ask because I am relatively new to trading.
Hi Tom, thanks for your post. Always great for those learning like myself. Just wondering, you mention that for a cypher the C point shouldn't exceed the 1.414 retracement, though as far as I can tell the C point on this set up is something like1.564 (unless I'm calculating it wrong :-)). Wouldn't that make the Cypher invalid or is there some leeway? many thanks.
Hi, no problem at all.
The C leg comes in perfectly in between the 1.272 & 1.414 so you must have drawn the It out a little wrong.
Yes if price didn't touch the 1.272 or exceed the 1.414 even by 1 pip it would then be invalid.
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