Warnings: Market is in a strong uptrend, could potentially reach 616 then retrace down or continue the trend
Validity: AB leg and CD leg show signs of symmetry, 414 extension
Warnings:
Trade 1 - Aggressive traders enter at 414 extension of AB leg
Trade 2 - Conservative traders wait to enter at 616 extension of AB leg
Validity: AB leg and CD leg show signs of symmetry, 414 extension
Warnings:
- Look for wide range bars completing the D leg (could extend past .782) of the cypher
- Market has been in a strong uptrend (keep contract size small)
- If your trading using nadex as broker be aware of the time the pattern forms you want to have enough time to reach targets
Trade 1 - Aggressive traders enter at 414 extension of AB leg
Trade 2 - Conservative traders wait to enter at 616 extension of AB leg
Trade active:
Entered at 414
Comment:
Stop reached for trade 1
Comment:
Reached to the 1.618 of the AB=CD pattern then price action retraced down
Stop loss is at 6407
First take profit for the 414 trade is at 6362.7
Second take profit for the 414 trade is at 6351.4