The Cypher Pattern

The Cypher Pattern

It was Darren Oglesbee who discovered the Cypher pattern in trading. Visually, it is an inverse pattern of the Butterfly. Technically an advanced formation, the Cypher structure has particular Fibonacci measurements for each point. Though it works on any time frame and market, to be on the safe side, it is advisable to choose higher time frames.
It does not occur as frequently as the Butterfly and is unique as it is defined by specific rules.

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The Butterfly Pattern

The Butterfly Pattern

The Butterfly Pattern is a unique 5-point extension pattern. Bryce Gilmore discovered it and Scott Carney further defined it. The structure has specific Fibonacci measurements for each point. It is important because it conventionally provides more favorable risk/reward ratios. The pattern can be found at significant tops and bottoms. Additionally, the failure of the pattern may mark a strong continuation move.

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The Crab Pattern

The Crab Pattern

In harmonic trading, the Crab is a reversal pattern that constitutes four legs, namely, X-A, A-B, B-C and C-D. Like the Butterfly pattern, it makes possible entry into the market at extreme highs or lows. It can help you identify when a price trend is approaching its end. This enables you to enter the market just as the stock price reverses direction, using it to your advantage. This pattern was discovered by Scott Carney in 2001.

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The ABCD Pattern

The ABCD Pattern

Among harmonic patterns, the simplest is the ABCD pattern. It consists of two equivalent price legs and is not difficult to identify on charts. This is because it has a structure with specific Fibonacci measurements of each point. This factor removes chances of a flexible interpretation.

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