Cypher Pattern (Паттерн Кефир, паттерн Сайпер) — Форекс ликбез

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Cypher Patterns Trading Strategy – How to Draw Cypher Pattern

The Cypher Pattern Trading Strategy will teach you how to correctly trade and draw the cypher pattern. You can use the cypher harmonic pattern on its own and have a profitable Forex trading strategy.

It’s not a mystery that geometric patterns are in the Forex price chart. And the cypher pattern is a very good representation of that. The Cypher pattern forex is part of the Harmonic trading patterns and is the most exciting harmonic pattern. This is because it has the highest winning rate.

Our team at Trading Strategy Guides is building a step-by-step guide on Harmonic trading patterns. We recommend reading the introduction of harmonic patterns. Read the article here, Harmonic Pattern Trading Strategy- Easy Step By Step Guide.

It’s vital to read the introductory article on the harmonic patterns. It will give you a better understanding of this. We also have training on How to Trade with the Gartley Pattern.

The Cypher pattern forex works in every market and on any time frame. Our team at Trading Strategy Guides recommend avoiding the lower time frames. Only stick to the higher time frames, preferably the 4h and the daily chart. We want to make sure our readers are satisfied.

So, if you mainly trade in the lower time frame, don’t miss the chance to read the Best Stochastic Trading Strategy- Easy 6 Step Strategy. Lately, this article has received a lot of attention from our readers.

In efforts to help you trade the Harmonic patterns, we will provide you with the necessary tools and information for success. In this regard, we’re going to have a series of strategies that trade other Harmonic patterns, such as:

  • ABC Bullish/Bearish
  • AB=CD Bullish/Bearish
  • 3-Drives Bullish/Bearish
  • Gartley Bullish/Bearish
  • Butterfly Bullish/Bearish
  • Bat Bullish/Bearish
  • Crab Bullish/Bearish
  • Shark Bullish/Bearish

Before we get started, let’s review the indicators needed to successfully trade the Cypher Pattern Trading Strategy.

In order to better identify the cypher pattern forex and to be able to draw cypher patterns, you’ll have to use the Harmonic Pattern Indicator (see Figure below). You can detect the Harmonic Pattern Indicator on most popular Forex trading platforms (TradingView and MT4) in the indicator section.

Don’t forget you need to draw the Cypher pattern forex by yourself. Make sure you check to see if it matches the Fibonacci rules. In the next few paragraphs, we’re going to discuss this in more detail. Also, read my personal trading plan reviewed by Kim Krompass.

Now, let’s move forward and define the Cypher pattern forex.

What is the Cypher Pattern Forex?

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;

Defining the Strategy

The first rule of the Cypher pattern Forex is the retracement from X up to A has to come down. It should touch the 0.382 Fibonacci ratios, but can’t close below the 0.618 Fibonacci ratios. Between the 0.382 and 0.618 Fibonacci retracements of XA swing-leg, we have our third point of the Cypher pattern forex labelled “B.”

The next rule of the Cypher pattern forex is a Fibonacci extension of the XA leg. It comes in 1.27, but doesn’t exceed the 1.414 Fibonacci ratios. This point of the move is labelled “C” and completes the BC swing-leg of the Cypher pattern forex. The final leg of the Cypher pattern, where our orders will be executed, is at the finishing point D. The point D is located at the 0.786 Fibonacci retracements of the entire move started from X up to C.

Cypher Pattern Trading Strategy

Now, you’ll learn how to trade the Cypher Pattern with a very simple set of rules. They will try to minimize risk and maximize profits. Although, there is one more important step to learn before defining the Cypher pattern trading strategy rules. First, we will give you indications on how to apply the Harmonic pattern indicator.

Step #1 How to draw cypher patterns

I will walk you through this process step by step. You need to follow this simple guide and see the figure below for a better understanding of the process.

  • First, click on the harmonic pattern indicator. The indicator is located on the right-hand side toolbar of the TradingView platform. In the MT4 terminal, you can locate the harmonic pattern indicator in the Indicators library.
  • Identify the starting point X on the chart, which can be any swing high or low point on the chart.
  • Once you’ve located your first swing high/low point, you simply have to follow the market swing wave movements.
  • You need to have 4 points or 4 swings high/low points that bind together and form the Forex harmonic patterns. Every swing leg must be validated and abide by the cypher pattern forex Fibonacci ratios shown above.

Now, we’re going to review the Cypher pattern trading strategy rules.

Step #2 Buy Entry: Buy once CD-swing leg reaches 0.786 retracement of the XC swing leg.

From a risk management point of view, the Cypher pattern may be the most exciting harmonic pattern. This is because it has the highest winning rate. Our backtesting results have continuously proven the cypher pattern forex is a very reliable harmonic pattern.

Next, buy with a market order at the opening candle preceding the completion of the D point at 0.786 Fibonacci retracement of the XC leg. Once the market touches the 0.786 level, we assume wave D is in place, because we can’t control how far the market it will go. We’re only concerned in satisfying the Fibonacci ratios.

We can note the price only had a small deviation below the 0.786 Fibonacci ratio – our entry point.

The next important thing we need to establish is where to place our protective stop loss.

Step #3 – Stop Loss: Place the Protective Stop Loss below wave X.

For the Bullish Cypher pattern Forex, you normally want to place your protective stop loss below the point X. That’s the logical place to hide your stop loss. This is because any break below will automatically invalidate the trade.

We need to establish the most logical place for our take profit level in the Cypher patterns trading strategy.

Step #4 Bullish Cypher Pattern Forex – Take Profit: Take profit once we reach point A

The Cypher patterns trading strategy is a reversal strategy. We want to make sure we capture as much as possible from the new trend. If you’re not a fan of reversal strategy, and you prefer a trend following strategy, we encourage you to follow the MACD Trend Following Strategy- Simple to learn Trading Strategy. The strategy has attracted a lot of interest from the Forex trading community.

The Cypher pattern has a conservative take profit target. We want to take profits once we reach point A of the pattern.

Why, do we take profit so early?

For the majority of the harmonic patterns, it’s best to lock in profits as soon as possible. Since the Cypher pattern is one of the most profitable harmonic patterns, we can give it more room for the price action to breath. We have the chance to at least see a retest of the wave A.

Note** The above was an example of a BUY trade using the Bullish Cypher patterns trading strategy. Use the same rules for a SELL trade. In the figure below you can see an actual SELL trade example.

Conclusion

The rules of the Cypher pattern trading strategy are pretty much straightforward. However, even though it has a bigger winning ratio than the other harmonic patterns, the Harmonic Cypher structure can be spotted very rarely on the chart. We need to take full advantage of the instances that show up.

We hope the Cypher patterns trading strategy rules have been clear and succinct. If you still have questions, please leave them in the comment section down below. Also, please give this strategy a 5 star if you enjoyed it!

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Гармонические паттерны в торговле

Dara86

Местный знаток

Гармонические паттерны — это паттерны, основанные на применении уровней и коэффициентов Фибоначчи для более точного определения разворотных точек. Колебания цен внутри фигур всегда взаимосвязаны. За основу всех гармонических паттернов взят паттерн AB=CD.

Прародителем гармонических паттернов считают Гарольда Гартли, который уложил основную идею волновой теории в паттерн. Волны он обозначил отрезками AB, ВC и CD, которым предшествует некая волна XA.

Паттерн «Гартли» является самой пропорциональной и наиболее узнаваемой разворотной фигурой. Это модель, которая обязательно включает в себя паттерн AB=CD , а определенные точки В и D привязаны к уровням Фибоначчи 61,8 и 78,6.

Основные виды гармонических паттернов Гартли

    Паттерн «Бабочка» допускает использование целого ряда различных коэффициентов Фибоначчи, не привязываясь к конкретному значению. Следует заметить, что паттерн Бабочка был открыт учениками и последователями Гарольда Гартли – Джил Мур и Гарри Песавенто. Нередко можно встретить такое название паттерна как «Бабочка Песавенто». Правило привязки отрезков и точек придумал Песавенто, более широко истолковавший варианты расположения крыльев бабочки.

Паттерн «Летучая мышь» очень напоминает модель Бабочка, отличие в размахе крыльев, а точнее в пропорциях сторон XA и CD.

Паттерн «Краб» получил свое название из-за малого размера отрезка AB относительно пропорций CD и XA, которая делает треугольники больше похожими на клешни краба, а не на крылья бабочки.

Паттерн «Три движения» или «Три индейца» — достаточно редкая разворотная модель, где расстояние между 1-2-3 и длина АВ и CD практически равны. При этом точки 1,2,3 расположены на одной линии.

Есть еще несколько вариаций гармонических паттернов Гартли, такие как:

  • Cypher («кефир», «шифр», «Снайпер»), имеющую своеобразную волну ВС;
  • «Акула» (Shark), отличительной чертой которой является длинный плавник треугольника XAB. Формация была открыта в 2020 году.

Многие из этих паттернов модифицировались и дополнялись. Однако, гармонические паттерны – очень точный инструмент, способный предсказать последующее движение цены. Но не стоит забывать, что даже идеальные паттерны не дают 100%-й гарантии успеха.

Существуют вспомогательные индикаторы для помощи в поиске гармонических паттернов. Я нашла самый распространенный индикатор Harmonic Pattern.

А какие индикаторы вы используете для поиска гармонических паттернов или может рисуете вручную?

Forex CYPHER pattern

TABLE OF CONTENTS:

The Harmonic Cypher pattern is visually an inverse pattern of the more common Butterfly harmonic pattern (read more about butterfly pattern). It is not as commonly occurring as the Butterfly pattern and is distinct by the strict rules that govern the Cypher harmonic pattern. The Cypher pattern was discovered and defined by Darren Oglesbee.

The chart below illustrates a bullish and a bearish Forex Cypher pattern.

Forex cypher pattern– Bullish and Bearish

The main rules of the Bullish and Bearish Cypher patterns are as follows:

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Cypher Pattern – Rules

  • The Cypher pattern starts with a market price that establishes the X and A points. Once this leg is determined, the pattern evolves.
  • Point B retraces to 0.382 – 0.618 Fibonacci level of the leg XA
  • Point C is formed when prices extend the XA leg by at least 1.272 or within 1.130 – 1.414 Fibonacci extension level
  • Point D is formed when it retraces 0.782 Fibonacci level of XC
  • Point D is also where prices are expected to reverse
  • Targets are determined as 0.382 and 0.618 Fibonacci retracement levels of the CD leg
  • Stops losses are placed a few pips below or above the high or low of point X

Forex cypher pattern Targets

Bearish Cypher Pattern – Sell Trade Example

The following chart illustrates a bearish cypher pattern example.

BearishCypher Pattern, Sell Set up

  • After forming the (XA) leg, price retraced to 0.566% to form point (B)
  • From (B), the (C) leg extended (XA) by a 1.418%
  • From (C), price then rallied to point (D), marking a 0.972% retracement of (XA)
  • The short position after point D saw prices falling to 0.382% and 0.618% of the CD leg with stops at the high above or near (X)

Bullish Cypher Pattern – Buy Trade Example

The following chart illustrates a bullish cypher pattern example.

BullishCypher Pattern buy set up

  • After the (XA) rally, prices retraced to 0.462% to mark point (B)
  • From B, price rallied back but did not make a new high, but just close enough to point (A) high to mark (C)
  • From (C), prices then fell below (B) but above (X), retracing (XA) to 0.763
  • From (D), price then rallied to reach the 0.382% and 0.618% retracement level of (CD). The entry would have been a few points above (D) with stops at (X)
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