Market Structure:
Timeframe:
Weekly: Bearish trend still intact.
Daily/4H: A bullish Cypher pattern has formed, offering a potential reversal opportunity.
Key Level:
The 0.786 Fibonacci retracement level is the ideal entry for this Cypher pattern.
Price is approaching a strong support zone at this level.
Trade Setup: US100 Long (Cypher Pattern Completion at 0.786)
Entry:
Wait for price to reach the 0.786 retracement level of the Cypher pattern.
Look for bullish confirmation (e.g., bullish engulfing candle, RSI divergence, or a strong bounce).
Stop-Loss:
Below the X-leg of the Cypher pattern for added safety.
Take-Profit Targets:
TP1: 38.2% retracement from the D-leg.
TP2: 61.8% retracement from the D-leg.
TP3: Retest of the recent swing high.
Risk Management & Strategy:
Risk-Reward: Ensure a minimum of 1:2 R/R ratio for this trade.
Confluences for a Strong Entry:
Weekly Bearish Trend: But a temporary bullish retracement is possible.
Fibonacci 0.786 Level: High-probability reversal zone.
RSI Confirmation: Look for oversold conditions.
Price Action: Bullish candlestick formations before entering.
Final Thoughts:
Short-Term: Expect a bullish retracement from the Cypher pattern completion at 0.786 Fibonacci level.
Long-Term: If the weekly bearish trend remains strong, watch for rejection around key resistance levels for another short opportunity.
Timeframe:
Weekly: Bearish trend still intact.
Daily/4H: A bullish Cypher pattern has formed, offering a potential reversal opportunity.
Key Level:
The 0.786 Fibonacci retracement level is the ideal entry for this Cypher pattern.
Price is approaching a strong support zone at this level.
Trade Setup: US100 Long (Cypher Pattern Completion at 0.786)
Entry:
Wait for price to reach the 0.786 retracement level of the Cypher pattern.
Look for bullish confirmation (e.g., bullish engulfing candle, RSI divergence, or a strong bounce).
Stop-Loss:
Below the X-leg of the Cypher pattern for added safety.
Take-Profit Targets:
TP1: 38.2% retracement from the D-leg.
TP2: 61.8% retracement from the D-leg.
TP3: Retest of the recent swing high.
Risk Management & Strategy:
Risk-Reward: Ensure a minimum of 1:2 R/R ratio for this trade.
Confluences for a Strong Entry:
Weekly Bearish Trend: But a temporary bullish retracement is possible.
Fibonacci 0.786 Level: High-probability reversal zone.
RSI Confirmation: Look for oversold conditions.
Price Action: Bullish candlestick formations before entering.
Final Thoughts:
Short-Term: Expect a bullish retracement from the Cypher pattern completion at 0.786 Fibonacci level.
Long-Term: If the weekly bearish trend remains strong, watch for rejection around key resistance levels for another short opportunity.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.