Cypher patterns have gone wild. Cypher pattern is also known as the Royal Canadian pattern. In this post we discuss how to identify Cypher pattern. It is a 4 legged pattern and you will need some practice before you can identify it. In the last few posts, we talked about Harmonic patterns and how to identify and trade them. You should read this post on Harmonic patterns and ratio trading. After reading the post you must have understand these patterns are quite complex and you will most probably need a harmonic pattern software that can identify these patterns. With a naked eye it is most probably not easy to find these patterns. In the video below you can watch how to identify and trade a Cypher pattern.
Now after watching this video you should be able to identify this Cypher pattern. If you are still facing difficulty in how to identify this pattern, you can watch this second video also that explains again how to do it.
These are 2 more videos posted by a trader in which he explains how he identifies this pattern.
This is the second part of the above video. You should watch all these videos.
Harmonic Patterns and Ratio Trading
Cypher pattern is just one pattern. As said in the post on Harmonic patterns there are a number of harmonic patterns. In this post you can watch the videos that explains how to identify and trade the Gartley pattern. There are many types of Harmonic patterns and memorizing each one of them will take time and effort. There are harmonic pattern softwares now available in the market. You can search the market and find a suitable harmonic pattern software that serves your needs. Things are subjective here. How to identify the legs of this pattern. Maybe 2 traders identify the legs differently. So it is a good idea to use a software. Now as said in the post on harmonic patterns, these are high probability patterns. But there is no 100% guarantee that these patterns are going to work always. These patterns can fail. Just keep this in mind.
You have to take care of the ratios when you try to identify these patterns. So it is a good idea to use a software. The only problem is that most of these software are expensive. As said above these patterns are not going to work always. Sometimes you will find these patterns false. So our advice to you. Keep your trading simple. Only master those patterns that are simple to identify and trade. Mastering complicated patterns will only confuse you more. Watch this video now.