Possible Cypher, AB=CD and Butterfly Pattern Formation

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

Giao dịch đang hoạt động:

Reached Conservative entry point and first TP

Đóng lệnh: đạt mục tiêu:

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)

Bình luận:

First target reached for butterfly (A to D Retracement .618)