Wow this is huge, we have XAU/USD on a 4h chart with a picture perfect bullish cypher pattern but this time we're doing things differently, we'll be looking to sell-off from C to D.
The measurements for a valid cypher pattern are detailed below.
B: 0.382 - 0.618
C: 1.272 - 1.414
Final X to D: 0.786
Price is currently trading within a rising wedge, approaching major resistance at our C point and about to complete the D leg of a separate pattern not shown on this chart... Bearish AB=CD. This is why I love this setup!!!
Let's take a look into the longer timeframes with the Weekly chart, as you can see we have started trading above the 200 EMA. Currently approaching major resistance around our reversal zone, I'll be expecting price to sell off in this area all the way down to meet our EMA before showing any signs of a bullish reversal.
The measurements for a valid cypher pattern are detailed below.
B: 0.382 - 0.618
C: 1.272 - 1.414
Final X to D: 0.786
Price is currently trading within a rising wedge, approaching major resistance at our C point and about to complete the D leg of a separate pattern not shown on this chart... Bearish AB=CD. This is why I love this setup!!!
Let's take a look into the longer timeframes with the Weekly chart, as you can see we have started trading above the 200 EMA. Currently approaching major resistance around our reversal zone, I'll be expecting price to sell off in this area all the way down to meet our EMA before showing any signs of a bullish reversal.
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