The Cypher pattern is a reliable harmonic with distinctive ratios: B retraces 0.382-0.618 of XA, C extends 1.272-1.414 of XA, and D retraces 0.786 of XC. Known for its tight stop placement and high historical accuracy.
- Identify XABCD structure with bullish XA leg
- B retraces to 0.382-0.618 of XA
- C extends to 1.272-1.414 of XA (beyond A)
- D retraces to 0.786 of XC
- Bullish reversal candle at D confirms pattern
- Enter long at D on confirmation candle close
- Stop: below X (pattern invalidation)
- Target 1: 0.382 retrace of CD (partial exit)
- Target 2: 0.618 retrace of CD (final)
- Inverted XABCD with bearish XA
- Same ratios inverted
- Enter short at D with bearish candle
- Stop: above X, targets at 0.382 and 0.618 of CD
- // Cypher Pattern Ratios
- B at 0.382-0.618 of XA
- C at 1.272-1.414 of XA (extension beyond A)
- D at 0.786 of XC (defining ratio)
- Target: 0.382 + 0.618 of CD
The Cypher's strength is its unique C-extension. While Gartley/Bat have C inside AB, Cypher has C beyond A. This makes the pattern easier to spot on charts (the C stands out clearly) but also rarer to form cleanly.