A to B touches the .382 retracement but doesn't pass the .618 B to C touches the 1.272 extension from X to A to X.. waiting to see if it will close above the 1.414, if it does its valid but if closes below it will be invalid X to C fibo retracement to .786 for a possible short entry Stop loss above our X Profits to be looked for at a Fibo Retracement from C to D and the .382 and .618
"A to B touches the . 382 retracement but doesn't pass the .618 " - wrong! A to B touches the . 382 retracement but doesn't CLOSE PAST .618
A-point should be the lowest between X-point and B-point. B-point should be the highest between A-point and C-point. The only possible structure on the chart is this: prntscr.com/m974q0 Only after the pattern structure is found you start measuring reatios. Otherwise, you are measuring random market moves.
eswirrick
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@Alexander_Nikitin, Appreciate the insight, just started learning this pattern. Are you saying A point to B point can retrace past the .618 and still be a valid cypher pattern?
A-point should be the lowest between X-point and B-point. B-point should be the highest between A-point and C-point. The only possible structure on the chart is this: prntscr.com/m974q0
Only after the pattern structure is found you start measuring reatios. Otherwise, you are measuring random market moves.