Bearish Cypher Pattern on WBA. Great opportunity!
Hey everyone, we have another bearish Cypher Pattern setup on WBA. This Cypher Pattern can be seen on the hourly and 4 hour charts.. If you are not sure what a Cypher Pattern is or how to identify them, do not worry as I will be releasing a tutorial on everything you need to know in order to trade the Cypher Pattern successfully. This tutorial will be published on tradingview for anyone to see. The tutorial will be released by Wednesday March 22nd.
In that tutorial I will be explaining:
-Impulse Legs
-How to Find and identify a Cypher Pattern
-Where to place your Entries, Stops, and Targets
-How to Back test the Cypher Pattern for specific Symbols
-How to Strengthen your reasons for entry by defining trend and much much more!
This Tutorial will be interactive so make sure you have a pen and paper handy to complete the exercises if that is something you would like to participate in. I find that reading, writing, and then drawing helps you learn the fastest.
Tutorial Released on Wednesday March 22nd!
I recently published an idea (about 3 weeks ago) on WBA, The idea showed that we had a bearish Cypher Pattern setup on the daily chart. I Explained that my entry was around $85.90 and that my backtesting results showed that this trade takes on average 5-10 days to reach targets on the daily chart. 7 days after I entered the trade, I was filled on a Long wick for a price of $84.00. I Managed to get out by one penny as the low of the candle was $83.99! that does not happen often but it did this time around. my entry for that trade was on 2/16 and my exit was on 2/23. I Also trade options on WBA because there are a lot of institutional traders on this ticker. You will get massive spikes that take out your stops right before price goes in the direction that you desired. this can be a pain but we can avoid this by trading options (however we must stick to our rules) My rules which I will be sharing with you in the future for this ticker differ from the traditional Cypher Pattern rules.
please make sure you understand options and have backtested whatever it is that you are looking to trade as every symbol trades differently and options can really hurt you if you don't understand how to use them. For Cypher Patterns on the daily chart, I look for Targets at the .382 retracement of the C to D leg,however for Cypher Patterns on the hourly chart or 4 hour chart (in this case) I will be setting 2 Targets, Target 1 will be a little above the .382 Retracement of the C to D leg and Target 2 will be a little above .618 retracement of the C to D leg.
If this Pattern does complete and we do reach targets, I will be looking for some more down side over the next couple weeks and as I stated in my previous idea, I am a Buyer at $83.50. the conditions for that trade still remain positive. I will update these ideas throughout the week if anything changes or I see something different. feel free to comment with any questions you may have and I will be sure to get back to ASAP. Also be sure to check out my latest ideas below. Thanks everyone, good luck trading!
In that tutorial I will be explaining:
-Impulse Legs
-How to Find and identify a Cypher Pattern
-Where to place your Entries, Stops, and Targets
-How to Back test the Cypher Pattern for specific Symbols
-How to Strengthen your reasons for entry by defining trend and much much more!
This Tutorial will be interactive so make sure you have a pen and paper handy to complete the exercises if that is something you would like to participate in. I find that reading, writing, and then drawing helps you learn the fastest.
Tutorial Released on Wednesday March 22nd!
I recently published an idea (about 3 weeks ago) on WBA, The idea showed that we had a bearish Cypher Pattern setup on the daily chart. I Explained that my entry was around $85.90 and that my backtesting results showed that this trade takes on average 5-10 days to reach targets on the daily chart. 7 days after I entered the trade, I was filled on a Long wick for a price of $84.00. I Managed to get out by one penny as the low of the candle was $83.99! that does not happen often but it did this time around. my entry for that trade was on 2/16 and my exit was on 2/23. I Also trade options on WBA because there are a lot of institutional traders on this ticker. You will get massive spikes that take out your stops right before price goes in the direction that you desired. this can be a pain but we can avoid this by trading options (however we must stick to our rules) My rules which I will be sharing with you in the future for this ticker differ from the traditional Cypher Pattern rules.
please make sure you understand options and have backtested whatever it is that you are looking to trade as every symbol trades differently and options can really hurt you if you don't understand how to use them. For Cypher Patterns on the daily chart, I look for Targets at the .382 retracement of the C to D leg,however for Cypher Patterns on the hourly chart or 4 hour chart (in this case) I will be setting 2 Targets, Target 1 will be a little above the .382 Retracement of the C to D leg and Target 2 will be a little above .618 retracement of the C to D leg.
If this Pattern does complete and we do reach targets, I will be looking for some more down side over the next couple weeks and as I stated in my previous idea, I am a Buyer at $83.50. the conditions for that trade still remain positive. I will update these ideas throughout the week if anything changes or I see something different. feel free to comment with any questions you may have and I will be sure to get back to ASAP. Also be sure to check out my latest ideas below. Thanks everyone, good luck trading!
That Bearish Cypher Pattern did not reach completion and was invalidated by a break below the "C Point". (Shown on Chart below)
We may get a little bounce to the high side tomorrow however I am not convinced that the selling is over. We may see a quick bounce tomorrow followed by another drop down to $81.80's-$82.50's. If price does fall down into that zone and all my conditions are met, I will be looking to Buy. Feel free to ask any questions regarding these setups and I will be sure to reply. Thanks everyone! Good luck Trading!