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 !
Comments
mkdeep04
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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 ??
Nico.Muselle
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When a Cypher completes we are looking for a .382 retracement and .618 retracement ... in this case to the downside yes
AntonLarin
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Stop los do not need to put it a little higher , and a good prognosis
Nico.Muselle
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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 !
IvanLabrie
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Thanks for sharing.
Nico.Muselle
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Always welcome Ivan !
IvanLabrie
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Look at this Nico:
Structure rejected this rocket.
Nico.Muselle
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Yes, very nice reversal ... too bad I'm not trading this pair :D
IvanLabrie
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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.
Nico.Muselle
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I don't only trade harmonic patterns, I also trade based on structure ... I'll definitely have a look at those pairs, thanks !
nico Q.. about cypher.. when pattern complete then retracement 38.2 fib or it cont. of larger trend.. in this case downward ??