Potential Bearish Cypher Pattern forming on Monthly chart. Wait for the D point completion at 78.6% level. The market is currently overbought near the D point completion and we see a resistance zone (marked by pink dashed lines). Stops can go 10 to 20 pips above the X point. We also obtain 78.6% and 161.8% ratio confluence by doing Fibonacci inversion. Keep in mind that this is on a Monthly chart. You could also wait for a deeper D point completion in order to reduce the risk that you are willing to take.
Trade setup:
1. Choose position size lot based on your preference
2. Short at 78.6% retracement of XC leg (D point completion)
3. 1st target is 38.2% retracement of CD leg
4. 2nd target is 61.8% retracement of CD leg
5. Once 1st target achieved, move stops to break even
Please correct me if I have made any mistakes, by leaving a comment below. Thank You.
Trade Safe and Good Luck to all !!
Trade setup:
1. Choose position size lot based on your preference
2. Short at 78.6% retracement of XC leg (D point completion)
3. 1st target is 38.2% retracement of CD leg
4. 2nd target is 61.8% retracement of CD leg
5. Once 1st target achieved, move stops to break even
Please correct me if I have made any mistakes, by leaving a comment below. Thank You.
Trade Safe and Good Luck to all !!