There is a bearish cypher set up on GBPUSD with D completion at 1.22790.
How I trade this setup: Before entry: 1) I place my sell order a few pips below the D completion point (to cover the spread and ensure entry). 2) My order has a stop loss placed 10-15 pips above the X point. 3) My order has target set a few pips above the 61.8% retracement of the CD leg.
After entry: 4) If price reaches the 38.2% of the CD leg I close half of my position and move my stop loss to my entry point. 5) Do nothing, let the market either move down to my second target or up to take me out for breakeven on the second half of the position.
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Can u give us an insight about how u decide your D point price?
Best Regards
Beebags
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@Ebicer, Hi Ebicer, you're welcome, glad to know you found it useful.
I decide the D point price by taking my Fibonacci tool and drawing it from the X point to the C point. The D completion is the 78.6% retracement of the X to C.
Can u give us an insight about how u decide your D point price?
Best Regards