Last week we put this potential bearish Cypher pattern (left) on our radar, but because the risk was so large, it wasn’t a trade that I was able to take. Whenever this happens instead of calling it a day and deleting my charts, I always look for secondary reasons to enter. After blowing past the “D” completion the AUDCAD has found resistance at our “X” structure and has slightly retraced. As I look down to the 15 minute chart in preparation for today’s Live Trading session, I noticed a potential Cypher pattern within the bigger Cypher pattern that I can use to be involved in the trade. No it won’t be the same trade because going from 4 hour to 15 minute is just too large of a jump to expect the same results as far as target location, but it does give me a reason to get involved short at a level that I’m fond of. With patterns like this, stops are always beyond the X leg and initial targets are looking for a 38.2 and 61.8 retracement. Of course extended targets wouldn’t be a bad idea in this scenario as well.
Nice spot Akil ! I was watching this waiting for my order to get filled.
Akil_Stokes
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Sweet, bets of luck in the trade. may the pips be on your side.. Or our side I should say.
Dinkan
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I have got a different perspective. Have a look thank you
Akil_Stokes
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Thanks for sharing, I think it's good to see different views
moneymaking
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Hey Akil, we could also get a potential double top, which would give us a little bit of more confidence in taking this trade :)
Davis
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Akil, you say that you look for another reason for entry , what do you think about selling/buying pattern after its blown past D completion but havent violated X? In this case you still could sell this pattern with better price.
Akil_Stokes
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I think it's a good idea, but only if you do it for the right reasons. I'm allowed to make changes to my trading plan at the end of each quarter and that's something that I'm actually going to add come the end of September. Again, as long as it's for the right reasons
Davis
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what do you mean by "the right reason"?
Akil_Stokes
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Meaning if it were to make risk reward work, or if say you just missed the trade. I wouldn't purposely forgo the entry point in order to potentially get a better one.