Harmonic Indicators – Cypher Pattern

The Cypher Pattern uses Fibonacci values to determine potential reversal zones in which there is a high chance of a change of market direction. Once identified such patterns can create high reward to risk opportunities when trading forex and indices.

In the harmonic pattern world, the Cypher pattern forex is a four leg reversal pattern. The pattern follows specific Fibonacci ratios. The Cypher pattern forex appears less frequent than other harmonic patterns. This is because it’s hard for the market price to satisfy such rigid Fibonacci ratios. The Cypher pattern forex needs to satisfy the following Fibonacci rules:

  • AB= 0.382 to 0.618 retracement of the XA swing leg;
  • BC= extend to minimum 1.272 and maximum 1.414 of the XA swing leg;
  •  CD= retrace to 0.786 of the XC swing leg;

 

This is a pattern that I trade using the Eurhythmic Patterns ProRealTime indicator from ALE Automatic Trading 

How To Trade Cypher Patterns

[embedyt] https://www.youtube.com/watch?v=tNkibT_htPk[/embedyt]
Alessandro has kindly agreed to provide a 15% discount to Robofuturestrader members, this is a one off discount that will discount the whole basket. Personally I have found him to be very helpful and prompt when fielding support questions

https://www.automatictrading.it/

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