EverythingForex

USDCAD: WARNING! A Mistaken Cypher Pattern!

FX:USDCAD   U.S. Dollar/Canadian Dollar
148 4 3
4 days ago, I published 2 advanced patterns I saw on this pair: 1 bearish Cypher and 1 bearish Gartley .
USDCAD 1 Gartley and 1 Cypher with Bullish Morning Star pattern

Prices are now moving strongly towards filling the cypher so I feel the need to issue this warning:

Don't trade that "cypher" because it is NOT a cypher! Trade it at your own risk! If you trade it, you are not trading a Cypher pattern!

I had misidentified that pattern as being a cypher but in fact, the C point DOES NOT reach the minimum required 1.272 extension as is required to be a cypher! However, the Gartley is still valid.

My apologies to my readers and my followers. If I am wrong, I will admit I was wrong! Which I hope is not often!
BIG NEWS! Want a FULL WEEK of FREE ACCESS to my member's charts & analysis? If you want it, PM me! Also, for all who PM me, you will be entered to win a FREE MONTH'S Subscription! PM me for details!
riskmode TOP
a year ago
Why do you say point C didn't reach the 1.27? It looks like it made it all the way down to the 1.41....
Reply
If you are looking at the measurement by the pattern drawing tool, it is wrong! Use the Fib extension tool to measure the XA extension and you will see it does not reach the 1.272 extension. This point was made clear by Akil Stokes who works with the creator of the cypher pattern, Jason Stapleton.

See this post:
A COMMON CYPHER PATTERN ISSUE
Reply
nezyrinfx
a year ago
it did reach 127.2
Reply
EverythingForex PRO nezyrinfx
a year ago
the low of the bar for the A point is 1.21267. The 1.272 extension is at 1.21029. A difference of 23.8 pips. These harmonic patterns have very precise rules that must be met. Price MUST reach the fib point but can surpass it and even close past as long as it is within its defined parameters. For a cypher, the XA fib extension to point C MUST be 1.272 - 1.41.

If you see different , please post a chart. Feel free to call it a cypher and trade it if you wish though. Frankly speaking, I think that that trade just may actually work out to be a winner but it still is not trading a cypher, IMHO. I just don't want to mislead my readers and followers by posting something that not correct. Thanks for the feedback though. I'm not being defensive about it and I do wish it was a cypher so I could also trade it!
snapshot
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out