Confirmations for Cypher Pattern: - A to B must touch 0.382 but cannot exceed 0.618 - 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 back at support (point C of Cypher Pattern)
There's also a possible bullish movement after second TP is been reached. Good Trading. - 4h Chart
Nota
Bearish Three Drive Pattern: - 3 tops - ABCD pattern inside Three Drive pattern - ABCs between each retracement or consolidation - Divergence inside MACD - Trend-Based Fib Extension for D completion (1.272 - 1.414)
At this point we are at the top of the Cypher Pattern in 4h, so im looking for bearish entries in minor timeframe. Good Trading. -5min Chart
Nota
Three Drives Pattern was completed and made a double top for resistance at 1.272 - 1.414 area. At this point Cypher Pattern trade is actice and were bearish. Good Trading. -5min Chart
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