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Cypher Pattern

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 30 Apr 2023
Category: Harmonic Patterns
CYPHER Harmonic Patterns Trade

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Unlock the Secrets of the Cypher Pattern: A Forex Trading Phenomenon

Hey there, forex enthusiasts! Today, we’re going to explore one of the lesser-known yet incredibly effective harmonic patterns in the world of forex trading: the Cypher Pattern. This captivating pattern can help you identify high-probability trade setups, giving you an edge in the market. So, let’s dive into the mysterious world of the Cypher Pattern and unleash its potential!

What is the Cypher Pattern?

The Cypher Pattern is a type of Harmonic Pattern that relies on the power of Fibonacci ratios and market geometry to predict potential reversals. This pattern consists of five points (X, A, B, C, and D) and is used to identify high-probability trade setups in the forex market. Traders enter long or short positions at point D, depending on the reversal direction.

How to measure the Cypher harmonic pattern?

Stage 1: Formation of B retracement leg – This leg must form within 0.382 to 0.618 retracement only from point X to point A impulsive leg, hitting the next level 0.886 would invalidate the pattern.

Stage 2: Formation of C Impulse leg – Once stage 1 is met, point C would be the next one to form and must be within 1.272 to 1.141 levels of point X to A retracement leg.

Stage 3: Formation of D retracement leg – Cypher pattern must form point D at 0.786 point X to point C retracement. This is where the pattern is considered complete and the levels to execute a trade. Stop losses placed just below point X and targets at 0.382 and 0.618 measuring point C to point D.

XA Any impulse leg
B 0.382 – 0.618 XA
C 1.272 – 1.414 XA
D 0.786 XC
Stop loss Few pips from X
Take profit 0.382; 0.618 CD


Long Trade example

Cypher Pattern (Long Trade)

Cypher Pattern (Long Trade)


Short Trade example

Cypher Pattern (Short Trade) 2 Cypher Pattern (Short Trade) 2

Why Choose the Cypher Pattern Trading Strategy?

Here are some compelling reasons to consider incorporating the Cypher Pattern into your trading arsenal:

  • It offers a high probability of success due to its accuracy in pinpointing reversal points.
  • It’s based on Fibonacci ratios, which are revered and widely used by traders globally.
  • It’s a versatile strategy that performs well in various market conditions.

Cypher Pattern vs. Other Harmonic Patterns

Let’s see how the Cypher Pattern compares to other popular Harmonic Patterns:

Cypher Pattern Other Harmonic Patterns
Features a 0.786 retracement of the XC leg at point D. Other patterns have different retracement levels at point D.
Has a distinct “zigzag” shape, resembling a cipher code. Other patterns have different shapes, such as butterflies, bats, or crabs.
Works well in both ranging and trending markets. Some patterns may perform better in specific market conditions.

Top 10 Currency Pairs for Cypher Pattern Trading

  1. EUR/USD
  2. USD/JPY
  3. GBP/USD
  4. AUD/USD
  5. USD/CAD
  6. USD/CHF
  7. EUR/JPY
  8. EUR/GBP
  9. NZD/USD
  10. GBP/JPY

Interesting Q&A on Cypher Pattern Trading

Q: How do I correctly draw the Cypher Pattern on my chart?
A: To draw the Cypher Pattern, start by identifying the XA leg. Then use Fibonacci retracements and extensions to find points B, C, and D. Remember that point B should be a 0.382-0.618 retracement of the XA leg, point C should be a 1.272-1.414 extension of the XA leg, and point D should be a 0.786 retracement of the XC leg.
Q: Can I use the Cypher Pattern on different timeframes?
A: Yes, the Cypher Pattern can be applied to various timeframes. However, keep in mind that higher timeframes like the 4-hour or daily charts often provide more reliable signals.
Q: How do I manage risk when trading the Cypher Pattern?
A: Proper metatrader-4-for-risk-management/”target=”_blank” rel=”noopener” >risk management is crucial when trading the Cypher Pattern. Always use stop-loss orders, typically placed just beyond point X for long positions and below point X for short positions. Additionally, consider using a risk-reward ratio of at least 1:2 or 1:3 to maximize your profits while minimizing risk.

My Personal Experience with Cypher Pattern Trading

When I first discovered the Cypher Pattern, I was intrigued by its unique design and the precision with which it identified market reversals. At first, I was a bit hesitant, but after incorporating the Cypher Pattern into my trading routine, I quickly realized its potential to improve my trading results.

One of the things I appreciate most about Cypher Pattern trading is its adaptability. It’s proven to be a valuable tool in both trending and ranging markets, providing me with numerous opportunities to capitalize on market reversals. The Cypher Pattern has become an indispensable part of my trading toolkit, and I’m confident it can do the same for you!


The Cypher Pattern is a powerful and mysterious trading strategy that can help you identify high-probability trade setups in the forex market. By mastering this harmonic pattern and incorporating it into your trading repertoire, you’ll be well on your way to elevating your forex trading journey. So, crack the code and give the Cypher Pattern a try – you won’t be disappointed!


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