Thread: Trading Journal - Advanced Technical Patterns

Hello people. Back from thanksgiving holiday and ready to make some pips.

Some potential trades......EURGBP has an emerging bat/cypher/head & shoulder pattern moving into a supply zone. Its inverse on the gbpchf is doing something similar. These may not complete because a cypher has already completed on the eurgbp and the market may just rollover early.

Attachment 2649

The EURCAD has an emerging EURCAD bat pattern.

Attachment 2650

These may not complete but lets wait and see what happens. Later.

Trade Update. I got filled on the EURCAD bat and on a EURAUD gartley. I prob won't be posting any more swing trades for the month seeing as how its December. Lets see if these one works out. Either they will or I will be stopped out rather quickly. Lets find out.

EURCAD Bat pattern



EURAUD Gartley pattern



Later Guys.

Both trades were losers. As a expected for swing trades in December. Well that's it for swing trades. Maybe I'll post some day trades some time this month......Later again.

Trade Update for eurgbp emerging bat/cypher/head & shoulder pattern posted earlier......It looks like the pic was not uploaded properly so I will post the before and after:

Before


After


And that's that. Again I'm not posting any new trades but I just wanted to update this one. Later

Hey Luz,
I've enjoyed your journal. I have noticed some of the skepticism about cyphers and wanted to add my .02. I only trade cyphers and have noticed a number of patterns within cyphers that help avoid some of the failures. I'm always happy to find others who trade this pattern because I'm always trying to improve how I trade them. I know things will probably be quiet on this forum until the new year, but I'm excited to see what this next year will hold as the market picks back up.

Originally Posted by danwils

Hey Luz,
I've enjoyed your journal. I have noticed some of the skepticism about cyphers and wanted to add my .02. I only trade cyphers and have noticed a number of patterns within cyphers that help avoid some of the failures. I'm always happy to find others who trade this pattern because I'm always trying to improve how I trade them. I know things will probably be quiet on this forum until the new year, but I'm excited to see what this next year will hold as the market picks back up.

Thank you danwils. Yeah its pretty much vocation time right now. Next year will be awesome...especially for cypher pattern traders I'm sure. By the way, what are these patterns you've notice within cyphers that helps you avoid some of the failures if you don't mind me asking?

Originally Posted by Luzonxzy

By the way, what are these patterns you've notice within cyphers that helps you avoid some of the failures if you don't mind me asking?

So some of these are still being tested, but I've found them to hold true. Some cyphers have an ambiguous X. Sometimes there are multiple peaks and the beginning of the impulse leg is unclear. When this happens, I have found that checking each potential X with an X to C retracement will reveal which is the actual beginning. When the pattern is on its way to completing D, the fibs should respect a 38.2 if X is correct. I have been frustrated when my order wasn't filled because X was wrong. This respect of 38.2 seems to be a good indicator of X. Another helpful thing I have learned (which is probably obvious to everyone) is that structure takes precedence. If there is no structure at the 78.6 to complete D, I either will not trade it, or will put my entry at X. The rules for trading cyphers include stops above X because cyphers frequently retest X. Previous structure seems to be a good indicator of which cyphers will retest X, which gives me a more precise prediction of the turn. The structure rule can also apply to targets. The targets on a cypher are a 38.2 and 61.8 of C-D. There is usually previous structure around these levels. By letting structure determine your targets, sometimes target 1 will give you more than just a 38.2. Sometimes the structure is prior to a 38.2, and this is helpful to know as well. This will not give you as much, but it could be the difference between reaching your target and just head back to break even. Remember: "It's not about how much you gain; it's about how much you don't lose." I have a few more things I'm working on, but I'll save those till I've worked on them some more. Let me know what you think.

Oh, one other important fact: Big fibs are more important than little fibs. Take a look at this GBPCHF cypher. You'll notice that there was even a little structure that supported the 78.6 entry, but this didn't matter. I didn't get filled on this one because it respected a daily chart fib level rather than my cypher fib level. The beautiful ones have all the levels align, but I think that when the lower time frames don't quite match up with the higher time frames, the big fibs win. I still have a lot of checking to do on this theory, but I think it's sound. Remember, I am only trading cyphers, so I'm not sure about these things on other pattern trades. I want to immerse myself in this pattern before I add other patterns to my strategy.