Simply Chart Patterns

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Archive for the category “Cypher Pattern”

Will The Cypher Stop The Aussie Bears?

Looking at AUDUSD daily charts, it is quite evident that the momentum is with the bears for now. For those who are short on this pair, you might be wondering where would be a good target to aim for.

Well, I spotted a pretty good looking Bullish Cypher Harmonic Pattern forming up on the daily chart.

In my opinion, it would be a good idea at least to watch the price action when price reaches the 78.6% retracement level of the XA leg to see if a reversal back up is on the cards.

As always, only time and price will reveal what’s in store for the future.

AUDUSD Daily Chart With a Bullish Cypher Harmonic Pattern Forming.

AUDUSD Daily Chart With a Bullish Cypher Harmonic Pattern Forming.

Cyphers: They Keep Popping Up Everywhere

Following the aftermath of several central bank news announcements, all trading opportunities mentioned in my previous post “Tis’ The Season For Cyphers” proved to have been invalidated.

Remember one of the 5 Market Truths is that “Anything can happen”. Trading is a numbers game. We keep working our edge, believing that in the long run we will be profitable.

In keeping with the Cypher Season, here is one more that I just stumbled upon. Its on AUDCAD, that was featured in my previous post with a Bearish Cypher Harmonic Pattern. This time round it is a Bullish one forming. This one has one additional confluence factor, which is the lower trend line of the uptrend channel drawn on the daily chart as support near the D point. The new Cypher is in Cyan color.

Bullish Cypher Harmonic Pattern forming on AUDCAD H4 Chart

Bullish Cypher Harmonic Pattern forming on AUDCAD H4 Chart

Below is the Daily Chart showing the Uptrend Channel.

Uptrend Channel On AUDCAD Daily Chart

Uptrend Channel On AUDCAD Daily Chart

Tis’ The Season For Cyphers

While doing my regular search for trading opportunities, I found a bunch of Cypher Harmonic Patterns forming.

Bullish Cypher Harmonic Pattern On EUR/GBP Daily Chart

Bullish Cypher Harmonic Pattern On EUR/GBP Daily Chart

 

Bearish Cypher Harmonic Pattern Forming On GBP/CHF Daily Chart

Bearish Cypher Harmonic Pattern Forming On GBP/CHF Daily Chart

Bearish Cypher Harmonic Chart Pattern Forming On AUD/CAD H4 Chart

Bearish Cypher Harmonic Chart Pattern Forming On AUD/CAD H4 Chart

For more details on the engagement rules for Cypher Harmonic Chart Patterns, please click on this link

 

[FX - NZDJPY] Potential Bearish Cypher Harmonic Pattern Forming

Cyphers everywhere. This time I spotted a potential Bearish Cypher Harmonic Pattern forming on the H4 charts of NZDJPY. This Cypher is not perfect, if the rules of the Harmonic Pattern are followed strictly; Point B does not retrace at least 38.2% of the XA leg. But it is pretty close.

As usual, Point D will be watched closely for price action reversal signals.

NZDJPY H4 Chart With a Potential Bearish Cypher Harmonic Pattern Forming

[US Stocks] EGO – Potential Bullish Cypher Harmonic Pattern Forming

I’m watching a Gold Mining stock called Eldorado Gold Corp (EGO). There seems to be a nice, potential Bullish Cypher Harmonic Pattern forming on its Daily chart. I will be watching and waiting for price action to develop near point D of the pattern. There is also a somewhat strong support zone that coincides with point D too.

Eldorado Gold Corp (EGO) Daily Chart With a Potential Bullish Cypher Harmonic Pattern Forming

Interesting Bullish Cypher Forming on The AUD/NZD Daily Chart

Interesting Bullish Cypher Forming On The Daily AUD/NZD Charts

An interesting series of events could be forming up on the Daily Chart of AUD/NZD.

Firstly, there is a Bullish Cypher Pattern forming up as price is pulling back to form point D at the 78.6% Fibonacci Retracement level of the XA leg. The requirements for a good Cypher pattern is as follows:

  1. The AB leg must retrace at least to the 38.2% Fibonacci retracement level of the XA leg. This one pulled back to 61.8%
  2. The Fibonacci extension of the XA leg must reach at least 127.2% and must not exceed 141.4%.
  3. The subsequent pullback after point C must reach the Fibonacci 78.6% retracement level of the XC leg to form Point D and the Potential Reversal Zone.

Secondly, there is a larger Bearish Gartley Pattern also forming on this pair. So far, it has already completed the XA and AB legs and is currently forming the BC leg which nicely coincides with the completion of the Bullish Cypher’s Point D.

This scenario presents the opportunity to long first based on the Bullish Cypher and then short later when the larger Bearish Gartley pattern completes (as shown by the red dashed arrows).

Happy Pip Hunting to All!

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