Get started

Xabcd

LEARN TO TRADE THE CYPHER PATTERNSTAGE 1: THE BULLISH IMPULSE LEG A bullish impulse leg is a strong move in price action to the upside. The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction. The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A. STAGE 2: B LEG RETRACEMENT Now that you have identified your X to A impulse leg you are now looking for the B leg, which is a retracement of the X to A impulse leg. Take your Fibonacci retracement tool and draw from your X leg to your A leg. The crucial Fibonacci levels you are looking for are the 38.20% and 61.80% Price action must at least touch the 38.20% retracement but cannot close below the 61.80% retracement. As you can see by the illustration, the candle does not need to close below the 38.20% retracement but must at least spike through. The bullish Cypher pattern will be invalid if price action closes below the 61.80% retracement of the X to A move. STAGE 3: C LEG EXTENSION Once you have identified a valid X to A impulse leg and a B leg retracement, you are now looking for a valid C leg extension. Take your Fibonacci extension tool and draw from X to A and then back to X. The crucial Fibonacci extension levels you are looking for are the 127.20% and the 141.40% Price action must at least touch the 1.272% but cannot close above the 1.414%. As you can see by the illustration the candle does not need to close above the 127.20% but must at least spike through. The bullish Cypher pattern will be invalid if price action closed above the 1.414% STAGE 4: D LEG COMPLETION Now that you have a valid X, A, B and C move you are looking for the final leg in price action at which point you will buy the chosen currency pair. Take your Fibonacci retracement tool and draw from your X leg to your C leg. You are looking for a 78.60% which will now give you a valid D leg completion of the bullish Cypher pattern. STAGE 5: PLACING YOUR TARGETS When looking to take targets on the bullish Cypher Pattern the first step is to use your Fibonacci retracement tool. With your Fibonacci retracement tool draw from the C to D leg, you are looking for target 1 at the 38.20% and target 2 at the 61.80%. To protect the profits you have accumulated at target 1 it is advised you move your stop loss to breakeven once the 38.20% target 1 has been attained, thus giving you a risk free trade to target 2. KEY NOTES & RULES: When trading the bullish Cypher pattern , the pattern is meant to be traded at 78.60% D leg completion only. If you believe the pattern is unfolding but price is only at point B, be patient and wait until price reaches the D leg completion. The power of the pattern comes from converging Fibonacci levels of all points from X to D. Point B must at least touch the 38.20% retracement but cannot close below the 61.80% from the X to A move. Point C must touch the 127.20% but cannot close above the 141.4% Point D is complete when price action touches the 78.60% retracement of the X to C move. Stop loss must be placed below the X leg structure support. Target 1 at the 38.20% retracement of the C to D move. Target 2 at the 61.80% retracement of the C to D move. CURRENCY PAIR: This pattern like any other is more profitable with certain currency pairs, you should do your own back testing on this before trading this or any pattern. Website: www.UKForexSignals.com Instagram: www.Instagram.com Instagram: www.Instagram.com Twitter: www.Twitter.com DISCLAIMER: Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
by UnknownUnicorn180388
30
AUDJPY Short: Gartley Complete, Target at Weekly PivotAUDJPY has completed a precise bearish Gartley pattern after a .618 retracement of the xa leg followed by another .618 retracement of ab. Although the pattern is technically complete, Gartley patterns will often test all of the levels in their potential reversal zones which typically consist of the area between .786xa and ab=cd. A conservative entry is at the top of the PRZ, should price reach that level. This allows for a stop above structural S/R while maintaining a substantial risk-to-reward ratio. The new weekly pivot provides a nice target as it is confluent with .618cd.
Short
by glennmercer
AUD/JPY BEARISH GARTLEY PLUS DOUBLE TOP OFF 0.382 RETRACE POTENTIAL COMPLETION OF XABCD PATTERN ON AUD/JPY, WITH THE COMPLETION LEG FINISHING ON THE 0.382 RETRACE OF LONG TERM SWING HIGH/SWING LOW. A BEARISH REVERSAL CANDLE ON 30M TIME FRAME MAY ADD TO FURTHER CONFIRMATION OF SHORT TERM SELLING, WITH THE 91.30 HANDLE ACTING AS STRONG STRUCTURE RESISTANCE. DAILY SUPPORT ACTS AS A NICE POTENTIAL PROFIT TAKING AREA, SHORT TERM SELLING CANNOT BE RULED OUT - RSI PIERCING THE OVERBOUGHT MEDIAN LINE ADDS FURTHER CONFIRMATION.
Short
by JoeNeilCarey
3
Butterfly Pattern , Eur/Jpy, 30 minhere we see a Butterfly pattern forming on the Euro against the Yen. If the pattern makes it above 136.025, the pattern will be complete, in which case i have places my entry at point B , my limit at the 1.618 extension of the BC leg , and my stop at the Red D point, because at that point , we are at roughly a 2:1 risk reward ratio, also because I am going to walk away, and if the market crosses 136.025, but doesnt make it the the Black point D, I don't want my stop further out then that structure. I have used the linear regression line as support for my Hypothesis, the chart will show you a linear regression of the last 200 moves,(or the last 100 on the hourly). The idea here is that the harmonic is also in sync with the price action style trade, giving me a better chance at correctly identifying the next move. Thanks for tuning in, please leave me some tips, advice, or just a plain old thumbs up! AKA like comment and follow:) Thanks again, Good Trading
Short
by Kylan_Laymance
XABCD Should Extend The Trend! This is continuation of my mini series about "When not to draw XABCD lines" It should be named part 2. "Picture is worth thousand words" Not any picture, if there is a picture about how XABCD works then its not worth so much. Almost every book will tell you that it works, but almost none will tell you when it doesn't work. For me I like to just deduce, not just merely believe stuff. This mini article is about why and when you should avoid drawing a XABCD lines. It tries to shed some light on the subject, its about limitations of XABCD strategy. There is no strategy based on pure system, every strategy is about planning which is based on reality, on chart not on fantasy, but on real market movements. Good strategy always ask, not to demand outcome, its planning which is based on probability, not on certainty. So we always ask "Based on market movements now, is it worth my time and money to draw XABCD lines?". On the chart, the red formation we classify as a Gartley pattern. Is it worth to even draw it? For me is not worth my time, for this reason. Fist we are seeing this blue corrections, I don't like this. I don't like the XA leg to be so much corrective. If you try to imagine purpose of XABCD formation in the context of Elliott, you can find that XABCD formation should extend the trend, so it should be simple this: 1. XA leg should be impulse in nature (5 wave pattern or similar to 5 wave) 2. ABCD legs should be corrective, ABCD should be correction to this impulsive XA leg. Its that simple, everybody with basic understanding of Elliott principle should get it, and it should be simple, we should not complicate this concept much. Simpler the better, corrective and impulsive, that's it! So why there is two formations on the chart? Its simple. If you see this Gartley pattern negated and market is going to this black D point, you should not be compelled to draw this black Bat formation, for the first reason and for the second which is this. After Gartley pattern is broken, you should not touch anything, because statistically there is no point in doing this. After that here are frequently moves against any formations and I encourage you just to study broken Gartley's. Some traders even use them to just play brakes (on the chart it would be if price exceed point X). So I hope that now we have some pictures and mini proves which are the charts itself, not to just take seriously any XABCD formations, but to be careful and seek better opportunity which is worth our time and money. The quality of traded formations reflects quality of our trading, which reflects our belief about our self worth.
by UnknownUnicorn93444
7
BC Is Always "Biggest Correction" How Not To Measure XABCD This mini chart is about how not to measure XABCD formations. The simple basic approach is to remember that BC is the biggest correction, is a mnemotechnic way to remember it. If there is another bigger correction like EC you should not classify pattern as an XABCD or you should draw pattern differently using bigger correction as a BC leg. In this chart we can use this EC correction as a BC leg, but after market went below E point but the pattern would not be valid anyway so we have to revise the measurements. This is not that important, but I will try to post this revision on the comments. So to be logical is to respect that on the chart you only will trade from DE point and manage trade to maximize profit as much as you can (using stop loss, trailing it on brake even if you can, etc.) This is hard, cause many traders do not understand this concept, drawing always next pattern to trade and usually market just goes against them twice or more taking stop losses. Instead of just lose one stop loss, they often lose twice or more. This is usually problem of aggressive male macho traders who wants just to beat the market instead of just being humble enough, and lose one stop loss. This is not to be found so often in female traders as much as in male traders. Females in trading are more able to just say "I don't know" and males often are saying "I know better" "I want to know fast" "I will know"
by UnknownUnicorn93444
1