Bearish Cypher Pattern Around The Corner - NZDUSD

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
We've all been bearish on NZDUSD             and the Trade Balance came out negative today.
It's especially a bad news for New Zealand which it's economy is based on exports.

The price seemed to ignore the bad news and correct its way higher.
And now it's came to a resistant area which forms a Cypher Pattern .

I usually don't trade this pattern because I doubt its technical basis, but this one is backed by fundamentals so let's give it a try.

U are right eventually, the price go down. However, i am wonder why the point D did not exceed point B, but still consider as a qualified Cypher pattern?
+1 Reply
DavoodWadi yongjui.foo
The most important criteria is that the CD leg retraces 78.6% of the XC leg.

And again, as in the bat pattern, We don't have any rules against it ;)
yongjui.foo DavoodWadi
oic. i was wrong. I thought D should be 0.786 of XA. So, point D in shark pattern also have to between 0.886 to 1.13 of XC, right?
+1 Reply
DavoodWadi yongjui.foo
In the Shark pattern it should Not be Between 0.886 and 1.13.
It should be exactly 0.886 Or exactly 1.13.
yongjui.foo DavoodWadi
btw, the point B is almost 0.786 of XA. Why would u consider it is a valid cypher pattern?
+1 Reply
DavoodWadi yongjui.foo
B actually spiked up to the 0.786 retracement but the real stable price was sitting in the 0.618 (Close price)
As in the chart, the exact 78.6% extra missed the trade by 1 tick!
But in really world every wise trader would put their orders couple of ticks ahead.

On the other hand, the target is hit and penetrated by a tick.

Until the next idea, have a good time.
Davood Wadi.
+1 Reply
DavoodWadi UtterOnce
Thank you.
The trade is done by the way! ;)
UtterOnce DavoodWadi
excellent work. one of the only cyphers that iv seen that actually worked out.
+1 Reply
DavoodWadi UtterOnce
Thank you UtterOnce.
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