Short

USDCAD (Deep Crab, Cypher and Butterfly Pattern) -4h Chart

Updated

Confirmations for Deep Crab Pattern:
A-B leg can retrace anywhere between 0.382 up to 0.618
B-C leg can retrace 0.382-0.886 of AB leg
C-D is an extension of up to 1.618 of XA leg
Take profits at 0.382 and 0.618 (Fibonacci D-C).

Confirmations for Cypher Pattern:
- A to B must touch 0.382 but cannot exceed 0.618
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
- First TP at 0.618 of D to C (Fibonacci)
- Second TP at 0.382 of D to C (Fibonacci)

Butterfly Pattern:
- A-B must touch 0.786, but cannot exceed X
- B-C touches 0.382, but sometimes goes further (does not exceed A)
- ABCD formation. D has to reach outside X and touch 1.272 or 1.618
- First TP at 0.618 (Fibo D-C)
- Second TP at 0.382 (Fibo D-C)

I expect price to be bearish around this area (1.618) for Butterfly Pattern iniciation and long term sell.
Good Trading - 4h Chart

Note

Cypher Pattern in 15min:
- A to B must touch 0.382 but cannot exceed 0.618
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
- First TP at 0.618 of D to C (Fibonacci)
- Second TP at 0.382 of D to C (Fibonacci)

We can see it made some type of Double Top by having a resistance and retest, with this Cypher we can look por bearish entries.
Good Trading - 15min Chart

Note

Cypher idea extended for a type of Deep Crab Pattern, which price extended towards 1.618 retracement and a good retest at 4h trendline.
Good Trading. -15min Chart

Note

Double Top at 4h trendline confirmed bearish impulse and reacted, now we can expect some type of ABCs or consolidation for bearish continuation.
Good Trading. -15min Chart

Note

Bearish continuation wit ABCs, C point at 0.618 where it went bearish.
Good Trading. -15min Chart

Note

Second TP of the minor Deep Crab Pattern was reached and went bullish looking for a higher high.
With Trend Based Fib Extension we get 1.618 at top where price is consolidating for strong resistance and bearish continuation
Good Trading. -15min Chart

Note

Three Drives Pattern with 3 clear Higher Highs and two consolidations for each impulse, we can even see previous minor Deep Crab was a pattern inside Three Drives. I expect some consolidation at top for bearish iniciation.
Good Trading. -15min Chart

Note

Structure is still looking for a good higher high before going bearish, there's still a possible bullish impulse with this Ascending Triangle, we can se 5 clear points with ABCDE and price could still make one last move.
Good Trading. 15min Chart

Note

Ascending Triangle was suspended and price continued with a minor Highger High forming a Double Top for our bearish movement, we can also see divergence inside MACD for bearish confirmation.
Good Trading. 15min Chart

Note

Inside Consolidation
Good Trading. - 15min Chart

Note

Consolidation has been impressive by forming several harmonic patterns inside Ending Channel, we can see 5 important points inside this channel, it could of been an Ending Diagonal, but it became a major consolidation inside channel and ending diagonal's mostly have 5 clear impulses.

0 to 2 :
Between this points we can see ABCDE and ABC Patterns, which gave us previous bullish Ascending Triangle.
2 to 3 :
Butterfly Pattern was formed respecting each fibonacci retracement and went bearish completing its pattern and gave us point 4.
3 to 4 :
Cypher Pattern was formed respecting each fibonacci retracement and D completion being at point 4.
4 to 5 :
Here we have to patterns starting with a bullish Gartley forming an ABCD pattern inside the Gartley for D completion (bullish entry).
Second pattern was a Bat with same ABCD pattern formation inside, this was perfect for bearish entries at point D where point 5 of the Ending Channel is
5 and bearish:
Right away we got a fast formation of a Cypher Pattern, D completion is about to hit the zone, which is pretty much near resistance (Higher High)
Good Trading. - 15 min Chart

Note

We can see a major Cypher Pattern inside point 4 to 5 of the Ending Channel.
Cypher Pattern in 15min:
- A to B must touch 0.382 but cannot exceed 0.618
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
- First TP at 0.618 of D to C (Fibonacci)
- Second TP at 0.382 of D to C (Fibonacci)
- Third TP back to point C
We can see each requirement being respected and third TP about to be completed at top, back to point C and resistance (Higher High)
Good Trading. -15min Chart

Note

Minor Cypher Pattern reacted right away when D reached 0.786 - 0.886 area, we can see a straitght bearish impulse and MACD rejecting trendline.
- A to B must touch 0.382 but cannot exceed 0.618
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
Each point of the pattern was respected and is why price reacted hard at 0.786 area. At this point prica can stil go up and make a double top or make some type of flag to confirm bearish continuation, if not let's look for Higher High.
Good Trading. 15min Chart

DanielParra99

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