TradingView
LewisGlasgow
Jan 18, 2017 1:09 PM

NZD/USD - Cypher & Bat Short

New Zealand Dollar/U.S. DollarFXCM

Description

Hello traders, it appears NZD/USD has completed the bearish bat pattern but is now forming a bearish cypher pattern on the 4h chart.

This correlates with the bearish cypher on the 4h chart for AUD/USD shown below.



I'll be looking for extra validation before entering this trade!

Comment

Price has now reached the top of a descending channel, watch this area for an entry point.

Comments
newwarez2
What kind of additional confirmation do you look for, price action? Rejection of breakout? Rsi and other indicators? Could you ellaborate more on this
LewisGlasgow
@newwarez2, price action, mainly analysing candlestick formation and structure within the reversal zone.
ChatchaiVong
thank so much
LewisGlasgow
@ChatchaiVong, you're welcome. I hope you have a great week!
Bago
i never used these bat and butterfly patterns.. do you know of some well explained documentation on how to use these? and how well do they work? thank you
LewisGlasgow
@Bago, you won't find many articles clearly explaining the use of harmonic patterns as the information is generally wrong. Scott M. Carney who created much of the foundation for harmonic patterns has a series of books, they're a lot more advanced and you'll find them useful.

They work across every timeframe with a varied success rate :)
More