4 days ago, I published 2 advanced patterns I saw on this pair: 1 bearish Cypher and 1 bearish Gartley.
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!
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!
EverythingForex
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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:
riskmode
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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....