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Cypher

CYPHER Harmonic Pattern - Made Easy For Everyone !The Cypher harmonic pattern is a technical analysis indicator used by traders to identify valuable support and resistance levels based on the Fibonacci sequence of numbers and detect trend reversals. Here, in this article, we explain how the Cypher harmonic pattern works, identify it, and trade it. What is the Cypher Harmonic Candlestick Pattern? The Cypher harmonic pattern is a technical analysis formation indicating a price-action reversal. The pattern was discovered by D. Oglesbee and is known as a relatively advanced pattern formation. In structure, the Cypher pattern is similar to the butterfly harmonic pattern; however, the Cypher is not a very common chart pattern due to its unique Fibonacci ratios. The Cypher pattern, which can be either bullish or bearish, has five points (X, A, B, C, and D) and four legs (XA, AB, BC, and CD). Like any other harmonic pattern, the theory behind the Cypher chart pattern is that there is a strong correlation between Fibonacci ratios and price movements. Eventually, the market is expected to reverse from point D after the four market swing wave movements How to Identify and Use the Cypher Harmonic Pattern in Forex Trading? Much like any other harmonic chart pattern, several conditions must occur so you can identify the Cypher pattern: B point retracement of the primary XA leg ranges between 38.2% to 61.8% Fibonacci levels C point is an extension leg with a Fibonacci ratio that should be between 127.2% to 141.4% of the primary XA leg D point should break the 78.6 retracement level of XC Let’s see what the Cypher harmonic pattern looks like on a trading chart. Cypher Pattern – Set a Stop Loss A reasonable stop-loss level when trading the Cypher pattern is simple and does not necessarily require the combination of Fibonacci retracement. All you need to do is to place the stop loss somewhere below the D level because if this level breaks, the entire Cypher pattern is invalidated. So, the stop would be placed at the next support or resistance level, which is the X-point Cypher Pattern – Set a Take Profit Target The simple Cypher pattern trading method is using its points as profit targets, meaning the A and C levels. How accurate is the Cypher harmonic chart pattern? The Cypher harmonic pattern has been historically proven to be a fairly reliable and accurate chart pattern. According to various studies, the pattern has an accuracy rate of around 70%.
Education
by FOREXN1
31
BTC Bullish Cypher Update #3: A Falling Wedge AdditionSince first identifying this Cypher on the weekly I have noticed that BTC seems to have been trading within this huge Falling Wedge and now this week after bouncing up from a much Smaller Daily Timeframe Bullish Shark for the second time, it is attempting a weekly Breakout of the more prominent Falling Wedge. The Measured Move for this wedge breakout would be around a $29,580 upside move to which would take us very close to the 61.8% Retrace from high to low at $49.6k. We currently have Multiple Harmonic Supports between $18.5k and $17.5k along with an Equally as strong Price Action Support Floor at around $18.5k based off of some weekly candle closes we got in 2017 and in 2020. A screanshot of the much smaller Daily Bullish Shark can be seen here on the CME chart but can also be seen on the Bybit chart underneath the CME screenshot in the Related Ideas tab below:
CME:BTC1!Long
by RizeSenpai
USDCADHi traders, i am looking it the USDCAD chart if price go back our mentioned pattern completion area then i will be looking price action again for a short position opportunity, if price drop from the current area and break 1.37184 level without hiting our mentioned entry level then this setup will be invalidate. If you are taking this trade so please i request you trade with your according strategy do not depend on my analysis, this analysis is just a scenario and i would love to be wrong GOOD LUCK.
Short
by TheLoserMan
5
BTCUSD - Harmony Pattern - CypherComparing with the standards of the Cypher pattern, we see many matches (in %): AB/XA = 58.6 belongs to BC/AB = 113 belongs to CD/BC = 127.2 belongs to CD/XC = 78.6 to be exact. DE can be expected at the 38.2 ~ $37K or 61.8 ~ $50K retracement levels. I don't understand why it coincides, interesting, but there is still a problem that the price range is too large compared to the bottom price ($3.8K - $69K), the application of an arithmetic scale is not supported when considering the ratio wave. If following this pattern, C is the top of wave 5 of the last cycle.
INDEX:BTCUSD
by MrSpasybo
Bitcoin bullish based on HarmonicsBitcoin printing a bullish cypher harmonic pattern on HTF charts. Usual Cypher targets marked in green but I am more inclined into using harmonic patterns for trend reversals and determining my overall market bias / sentiment. Not expecting any impulsive moves but I believe we have reached the bottom (or that the bottom is very near) with $BTC and we will start ranging for a bit to fuel the move to the upside. Check linked idea for LTF scenarios for Bitcoin.
Long
by xcitedDelirium
2