Criteria for the Cypher pattern
NOTE: The finish of the pattern matches perfectly with a high volume node which will probably serve as resistance
- The Cypher pattern starts with a market price that establishes the X and A points
- Point B retraces to 0.382 – 0.618 Fibonacci level of the leg XA
- Point C is formed when prices extend the XA leg by at least 1.272 or within 1.130 – 1.414 Fibonacci extension level
- Point D is formed when it retraces 0.786 Fibonacci level of XC
- Note: I also used the 78.6 fib of XA in confluence with the bullet above to create a "zone" for entry
NOTE: The finish of the pattern matches perfectly with a high volume node which will probably serve as resistance