EURO CYPHER PATTERN (How-to)Hi Trader,
Here we have a bullish cypher pattern with d completion at 1.05540. I have my orders in ready to go. Read below to find the trade details and a step-by-step process of how you can trade the cypher pattern.
Entry: 1.05550
Stop: 1.05080
Target 1: 1.06010
Target 2: 1.06310
1) Identify the X leg by looking for an 'impulse', or in other words a strong move in either direction
2) Take your fibonacci tool and draw from the the low (X point) to the high (A point) of the impulse move
3) If price retraces and at least touches the 38.2%, and does not close below the 61.8% of the X to A move then it becomes our B point
4) With the fibonacci tool drawn from the X to A, we now look for an extension of price (a move in the original direction) to at least touch the 127.2% and not close above the 141.4% fibonacci extension. This is the C point
5) We are now looking for the D point and the pattern will be complete. Grab your fibonacci tool and extend it to the highest high of the C point. The D point is a 78.6% retracement of the X to C
6) If price retraces to D the pattern is complete and we have a valid trading opportunity
Harmonic patterns will make you money IF TRADED CONSISTENTLY, just like any strategy that has an edge in your favour. The discipline to take every trading opportunity is what separates the winners and losers in this business.
If you found this useful leave a like, it motivates me to keep posting for you!
Good trading,
Luke
