The price reversal zone is between 183.065 & 181.840
We have two strong psychological whole number at 183.000 & 182.000 which will also be a key area to watch.
The PRZ zone is only a guideline of where we will be paying attention for trade setups and opportunity's.
Potential targets for the placed at the .382% and .618% retracement of the C to D move.
Stop loss would be placed below X leg .
Learn To Trade The .
I hope you are well.
About a month ago you posted some explanations of how to trade the Bat, Gartley and Cypher patterns as above (these were some of the simplist and therefore BEST explanations I have seen).
These drawings inspired me to learn these patterns, it is my intention to start with the Cypher pattern on a 4 hour chart of the GBPUSD, next week and to start back testing the last 5 years, then trading this pair whilst moving onto the EURUSD etc. (any advise you can give as to this process, would be greatly appreciated)
I am having a small problem though, and I hope you are able to assist me - I cannot find a source for the following information :
How do I identify the impulse leg i.e. the XA leg?
What constitutes a perfect impulse leg?
What is critical in an impulse leg?
Is there any other information I need, but am either, too ignorant or naive to ask?
Your assistance will be greatly appreciated.
Like Stilo4 i am having difficulty seeing the 1.272 - 1.414 extension zone.
When doing a fibonacci extension you need three points, swing low @ X, swing high @ B, then back down to the retracement zone of the X - A leg.
it looks like you bring the third leg of the fibonacci extension all the way back to the x leg?
Is there different ways of drawing fib extensions?
I only ask because I am relatively new to trading.