AUDUSD (Bearish Cypher Pattern) -4h Chart
Confirmations for Cypher Pattern:
- A to B must touch 0.382 but cannot exceed 0.618 (on this case 0.5)
- 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 would be long term to previous support
Left Leg of Pattern
A flag was formed with an ABC pattern, which gave us that bearish impulse for point C of our Cypher Pattern, even if you measure bearish impulse with Trend-Based Fib Extension you can see how price bounced around 1.272 -1.414 area.
Right Leg of Pattern
On this side is where it gets complicated, because of all the patterns that are on formation. First another flag was formed with ABC pattern, I measured bullish impulse by placing 0.236 right above flag and we can see point C rejecting 0.618 for bullish continuation.
After first retracement we now get our second retracement for possible Ending Diagonal
Ending Diagonal confirmations:
- 1 and 4 at same price (I expect price to retrace at 0.236 where point 4 would be)
- 5 clear points (point 5 would give us our bearish area for Cypher Pattern completion)
- take profits between 0.786 - 0.886 (around third TP of Cypher Pattern)
Second retracement is in formation for bullish continuation at point 5, where Ending Diagonal and Cypher Pattern would be completed for bearish impulse
Good Trading.
- A to B must touch 0.382 but cannot exceed 0.618 (on this case 0.5)
- 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 would be long term to previous support
Left Leg of Pattern
A flag was formed with an ABC pattern, which gave us that bearish impulse for point C of our Cypher Pattern, even if you measure bearish impulse with Trend-Based Fib Extension you can see how price bounced around 1.272 -1.414 area.
Right Leg of Pattern
On this side is where it gets complicated, because of all the patterns that are on formation. First another flag was formed with ABC pattern, I measured bullish impulse by placing 0.236 right above flag and we can see point C rejecting 0.618 for bullish continuation.
After first retracement we now get our second retracement for possible Ending Diagonal
Ending Diagonal confirmations:
- 1 and 4 at same price (I expect price to retrace at 0.236 where point 4 would be)
- 5 clear points (point 5 would give us our bearish area for Cypher Pattern completion)
- take profits between 0.786 - 0.886 (around third TP of Cypher Pattern)
Second retracement is in formation for bullish continuation at point 5, where Ending Diagonal and Cypher Pattern would be completed for bearish impulse
Good Trading.
Trade chiuso: obiettivo raggiunto:
It didn't reach point 5 and went straight down
