gartley/cypher patterns + double bottom

FX_IDC:NZDUSD   New Zealand Dollar / U.S. Dollar
50 7 4
Good evening traders,

I've noticed a (triple) bottom and some harmonic patterns .
I wait for the price to reach point D of the cypher patter (red one) for the best risk/reward ratio.

good luck and let me know what you think about this trade!
Nice, But I don't think that qualifies as a cypher, point c looks like only a 113% extension of x-a if you used a fib retracement tool not the gartley tool in tradingview...

more like a shark/ bat pattern combo - I still like it =)
+1 Reply
Tijmen_K dionvuletich
Thanks for your comment.
i see thanks for the advice! Dindt noticed it yet!
Tijmen_K dionvuletich
It is a 1.22
Tijmen_K Tijmen_K
It is a cypher pattern for me. in my rules of cyphers it needs to be 1.13 - 1.414 extension to be a vailed cypher.
Fair enough, your rules are your rules so if it works then great, although I know most traders only consider the 1.27 - 1.41 extension valid extensions for cyphers

On it's own I wouldn't trade the cypher as the entry is at the 78.6% retracement of x-c and it wouldn't meet my rules.. but it's horses for courses... each to their own, if it works for you then that is all that matters
+1 Reply
EverythingForex dionvuletich
I respectfully disagree. The rules for the "cypher" pattern are set in stone by the person who discovered it and called it a cypher - Jason Stapleton. His rules is that the " C point remains valid as long as there is AT LEAST A 127.2 extension of XA and there is NOT a candle close beyond the 141.8 extension of XA". That's word for word from his workbook. I didn't make it up! Harmonic patterns are supposed to be VERY PRECISE patterns. So if you go and use whatever you feel works for you, how can they be precise then?

I don't have anything against you using your own rules as to how to measure the XA extension but then IT ISN'T A CYPHER! Call it whatever you want to call it. Name it after yourself if you want. But I disagree to mislead others in calling it a cypher. It isn't. And if you think using 1.13 gives better results, then show your research and proof and heck, if it yields a better winning percentage, heck, I'll start using it as well and I'll tell everyone you discovered it!

Look. I'm not the pattern police nor am I trying to be. But people use these patterns because of the proven winning % that have been tested over thousands of times. The ratios provided for each pattern are researched to provide the optimum winning %. Why do you think Jason chose 127.2 and NOT 113? Well, as dionvuletich said, you're free to do whatever you want and maybe this trade will work for you. Maybe it won't. I wish you all the best though.
Tijmen_K EverythingForex
Good morning!
Thanks for your comment. I Dindt know about that! I am A beginner with harmonics so i only appriciate A "pattern Police" that watch my patterns ;)
I did got A picture of A cypher pattern from the internet. And that says it needs to be 113-141. So i tought i had to follow those rules to have A vailed cypher.

Can i ask you were you got the information for A vailed cypher pattern? I really want to learn how to draw and trade harmonic patterns.
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