GBPJPY - bearish cypher completed

FX:GBPJPY   British Pound/Japanese Yen
865 23 10
A bearish cypher pattern has completed at previous structure on this pair and a reversal is due. With the upcoming FOMC meeting later today I prefer however to be more careful in the trades I take and to limit the eventual damages it will cause.

For that reason I will not trade this as a traditional cypher pattern but I will consider it a structure trade. The difference ? For a traditional cypher pattern trade, my stop loss should go above X (which is 120 pips from where we are now). Treating it as a structure trade allows me to put the stop loss a lot closer to where we are now. It still is a risky trade knowing the spikes the FOMC can cause though ...

As always, trade my ideas at your own risk ... but most of all, before you do, perform your own analysis on it to check if it meets your trading plan !
i pubblished and i idea where it had a bearish crab around 182

what do you think?
I like how you choose random swing highs and random swing lows. If you look hard enough you can even see a cow pattern that is then forming a fish pattern.
-5 Reply
And if you look in the mirror you can see somebody who desperately wants to be interesting !
+3 Reply
StarProsper johneee3456
I'm not understanding why you use the term random, as I value your input in trading, could you please elaborate on your rules of engagement for this trade setup please? :)
+1 Reply
dionvuletich StarProsper
yeah jamesdenora trolled my post as well saying if I look hard enough I might see a cow as well... funny thing is his posts are also harmonic patterns and he even posted a bat pattern himself... simply a cynic with nothing useful to say
+1 Reply
StarProsper dionvuletich
He's changed his name from JamesDenora to Johneee3456 for reasons no one will know :)
+1 Reply
I don't pay too much attention to these kind of people who think their way of trading is the only correct way ...
thanks...realy halpful
+1 Reply
Nico.Muselle MOD pervej.khan.33
You are welcome !
Why didn't you choose X @ the previous top (2015-02-27 18:00:00) to the left of current X ?
+1 Reply
In that case it would not be a cypher pattern .... we had a big enough retracement there to consider it for an impulse leg for this pattern
Hey Nico, For cypher patterns I believe the risk is always greater than the reward but they still do work out in our favor, since they have great winning percentage. Let's see if this one will work. Thank you for sharing and Good Luck :)
+1 Reply
That's right .. they are not the best harmonic patterns as far as RRR is concerned, but their chance for a successful retracement is pretty high. That's why together with bat patterns they are my favourite patterns :)
Thanks for sharing.
+1 Reply
Always welcome Ivan !
IvanLabrie PRO Nico.Muselle
Look at this Nico:


Structure rejected this rocket.
+1 Reply
Yes, very nice reversal ... too bad I'm not trading this pair :D
IvanLabrie PRO Nico.Muselle
Give the euro pairs a look, also GBPNZD.
Potentially very strong uptrends in the making.
Not sure how you'd approach trend trading with your technique though.
+1 Reply
I don't only trade harmonic patterns, I also trade based on structure ... I'll definitely have a look at those pairs, thanks !
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Stop los do not need to put it a little higher , and a good prognosis
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If you trade it as a cypher pattern, the stop loss indeed needs to be above the impulse leg, you are right about that !
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nice one.. u nailed it.. tgt done.. me too was eyeing swing at 182.5 area but tested 184.xx...
nico Q.. about cypher.. when pattern complete then retracement 38.2 fib or it cont. of larger trend.. in this case downward ??
+1 Reply
When a Cypher completes we are looking for a .382 retracement and .618 retracement ... in this case to the downside yes
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