a potential cypher is setting up on usdcad 4H timeframe. As price goes closer to the completion level we should examine the CD-leg attentively. If it has no warning signs then the pattern can be traded with a limit order at the completion level. If there are warning signs then we should better wait for a confirmation of the reversal within the sell zone or simply skip the pattern. In this very situation we have three warning signs - large expansion bars, tailclose and gap. I will be a bit more conservative with this trade setup:)
Comment:
now the pattern is complete. no execution yet.
Trade active:
Price installed a rejection candles after completion. this is a good comfirmation. executed short on the shooting star close:
Trade closed: stop reached:
closed at stop
