I didn't plan on doing any analysis today but one of my training course clients shot this over the chat and well...can't pass up on a valid Cypher pattern. Here's to 2016, let's see I can pick up right where I left off.
Akil Stokes Chief Currency Analyst & Head Trading Coach TradeEmpowered.com
I had a question regarding targets...wanted your feedback.
If we are to use the .382 and .618 of the C-D Leg as targets (Say for instance in a Cypher Pattern), then what happens when the D legs expands before it decides to retrace to its .382? In other words, the D leg is dynamic, it is not set, therefore wouldn't the targets be dynamic as well? How do you handle this?
RamdzanY
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Once your order triggered, the target profit follows wherever the D leg extended until it hit your stops
InsiderB
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If D leg is dynamic and our target follows means, in that case our Risk : Reward ratio will get reduced,right ? I hope, Akil can provide a better answer.
Akil_Stokes
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Forexfordent is correct, when the D leg moves, it will have a direct affect on our initial risk/reward ratio
InsiderB
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Thanks Akil ! I meant the same :)
Akil_Stokes
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Well said
Akil_Stokes
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Good question, the D leg is Dynamic as we can only predict it's completion point. Therefore targets must be adjusted if the D leg pushes beyond our initial projection
azza
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Sorry for asking a stupid question... Im fairly new. If you are already filled, and the D leg extends, are you not already at loss? How can you then change your targets? Thanks.
Akil_Stokes
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If you're new it's not a stupid question, it just shows your willingness to learn. Can't get a solution to your problem if you don't ask right? A win isn't a win until your targets are hit and a loss isn't a loss until your stop is hit. Although advanced patterns have specific points of entry, there still lie a zone in which we expected it to complete. For most patterns that zone is between the projected completion point and the start of the impulse leg.
I had a question regarding targets...wanted your feedback.
If we are to use the .382 and .618 of the C-D Leg as targets (Say for instance in a Cypher Pattern), then what happens when the D legs expands before it decides to retrace to its .382? In other words, the D leg is dynamic, it is not set, therefore wouldn't the targets be dynamic as well? How do you handle this?