Possible Cypher Pattern, AB=CD and Butterfly Pattern Formation - This is my first post hope everything goes well for everyone happy trading
Warnings:
Look for wide range bars completing the D leg (could extend past .782) of the cypher
Market has been in a strong uptrend (keep contract size small)
If your trading using nadex as broker be aware of the time the pattern forms you want to have enough time to reach targets
If market gaps on open and completes a patter be cautious (Look for a reversal signal)
If market gaps on open and you get into the trade get out of the trade near or once the gap closes in my experience once a large gap closes it acts as a support / resistance zone
Trade 1 - Aggressive traders enter Bat Pattern at .782 (6322.2)
Trade 2 - Conservative traders wait enter .886 (6327) as it's a double top, completion of AB=CD and in the zone of butterfly
Validity:
3 large patters completing
Double top at all time highs
Crowed physiology taking profits from the rally up to all time highs. Greed / fear could drive the price down
Take profits with a retraecment from C to D at .386, .5, and .618
Trade ist aktiv
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Reached Conservative entry point and first TP
Trade geschlossen: Ziel wurde erreicht
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2nd & 3 TP Reached for Conservative traders Trade complete!
I project price action dropping further until it hits first targets of the butterfly. (Long term)(6,300-6,272) (Keep contract size small if you're trying to enter again) (Those who got in move stop/loss down to break even for a risk free trade)
Kommentar
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First target reached for butterfly (A to D Retracement .618)