Các mô hình tạo đỉnh đáy thường có xác suất không cao, vì cơ bản việc bắt đỉnh đáy đã có xác suất thấp hơn với việc đi theo xu hướng. Tuy nhiên mô hình Quasimodo là 1 trong số hiếm các mô hình bắt đỉnh đáy có xác suất cao, đủ tốt để kiếm lợi nhuận trong dài hạn, bởi mô hình Quasimodo có những đặc điểm tốt hơn các mô hình khác. Mô hình Quasimodo có hình dạng tương tự mô hình vai đầu vai, nhưng tại lần chạm swing low dẫn tới phần đầu thì giá phá vỡ luôn swing low này mà không giữ lại được. Đây là mô hình biến dị của vai đầu vai, do nó có dạng hình thằng gù nhà thờ Đức Bà Quasimodo.
1 Quasimodo Pattern (Over and Under) Easy guide to trading the Quasimodo Pattern The Quasimodo Pattern or Over and Under pattern is a relatively new entrant to the field of technical analysis in the financial markets Although new, the Quasimodo pattern is a commonly occurring theme that is more frequent when price carves a top or a bottom or when price begins a major correction to the trend The Quasimodo Pattern, although complex as it might seem is actually very simple This trading pattern is especially powerful because when it occurs, in most cases, traders will notice a confluence with other methods of analysis For example, when a trader spots a Quasimodo pattern near a support or resistance level, it increases the confidence of the trader or the trading probability Likewise, when trading divergences, when you spot a Quasimodo pattern, that confluence can be used to trade the divergence set up with more confidence As we can see from the above, the Quasimodo pattern is not a trading strategy by itself but is more of a confluence pattern that can be used to confirm a trader’s bias Of course, the Quasimodo pattern doesn’t appear all the time, but when it does, traders can be sure that the market offers a high probability trade set up What is the Quasimodo (Over and Under) Pattern? A Quasimodo Pattern is simply a series of Highs/Lows and Higher or Lower highs or lows Quasimodo Short Signal Pattern There should be a prior uptrend in the markets Price makes a new high, declines and makes a new local low Price then rallies above the previous high to mark a new higher high Price then falls to form a new lower low Price then rises towards the initial high (but does not make a new higher high) The fifth level in the set up is the trigger, where a short position is taken Stops are set above the higher high and the take profit level is up to the trader Quasimodo Long Signal Pattern There should be a prior downtrend in the markets Price makes new low then makes a small rally and forms a local high Price then declines to form a new lower low taking out the previous low Price then rallies to make a new higher high and then declines The final decline is equal to the first low The fifth leg in this pattern is the trigger for long positions with stops set to at or below the lower low Quasimodo Long Signal Pattern Examples: Quasimodo Long Example #1 Price is in a downtrend Price then makes a new low at 99.923 and then makes a new local high at 100.274 Price then declines and makes a new lower low at 99.983 Price then rallies to make a new higher high at 100.38 and then declines The final leg in the decline is just a few pips above the previous low This triggers a long signal Here is another example of the Quasimodo Long example: Quasimodo Long Example #2 Quasimodo Short Signal Pattern Examples: Quasimodo Short Example #1 Price is in an uptrend Price then makes a new high at 1.5251 and then declines to make a low at 1.5187 Price then rallies to make a higher high at 1.5321 and then declines A new lower low is posted at 1.5165 Price then makes a modest rally and this high stalls a few pips close to/above the previous high A short entry is then taken with stops near the highest high There is also an additional confirmation yet again with the RSI divergence as well Another example of the Quasimodo Short pattern example is given below: Quasimodo Short Example #2 A Quasimodo / Over and Under Price Pattern Revision I have been treating this blog like a personal log of observations for years, and one of the first patterns I wrote about was the over and under (nicknamed “Quasimodo” by some of our members) The bulk of my trading consists of a simple set of processes: Fundamental landscape, which for me translates to “how humans (and their machines) react to fundamental data” Stage of a trend Depending on the timeframe I am trading, I want to see at least movements I will enter on either the first or second piece of a movement, to a predefined target Measured move / target There are countless targets available to traders What I classify as a “natural” movement in price typically results in approximately 1.5X+ the movement leading immediately preceding it A handful of entry patterns that happen either at bottoms / major reversals, or in the context of a trend Over and Unders are one of them Why we like this pattern so much? Over and Unders follow both conventional and non-conventional price behaviors Conventional in the sense that they essentially nothing more than the beginning of a head and shoulders pattern Unconventional in the sense that they follow our rules for inner trendlines and confluence points But there is much more to this little pattern than I initially discussed When I wrote about these many years ago, I had one extra “qualification” that required price to move beyond a specified high or low in order to demonstrate a commitment of buyers or sellers In many cases, however, you will not find this to be the case As a result, you will be missing out on a considerable amount of opportunity Over time, I have realized the the contextual value of any pattern is of course much more relevant than the pattern itself After all, there is a reason that most price patterns demonstrate much better behavior when found within the context of trends Common sense should tell you that your performance should get a bump simply when conditions are prime, by latching onto underlying macro movements Context Overrules All I put particular emphasis on price patterns found within trends for the simple reason stated above These “rules” stand true in any market So for today, we will think less about the extra qualification previously stated with this pattern and take a look at the pattern itself with a solid contextual reference This same methodology stands true for any other continuation / reversal pattern (more specifics in upcoming posts) As I mentioned earlier, there are really only a handful that I use (6 to be exact) They are: Triple Taps Over and Unders Double Top/Bottom Pullbacks Double Top/Bottom Fakeouts (where a double bottom or top is exceeded by a small amount) Square roots (Top or Bottom followed by a lower or higher double top or bottom) V tops or bottoms My workday is essentially a constant hunt for these (all the better when there is a combination of them), usually with declining volume, and a simple count of legs and identifying targets And so for today, we will only worry about Over and Under‘s Over and Under's are More Common Than One Might Think As with any patterns I seek, abundance is a word I like to use in relation to them If I can't see them everywhere, then I know I am dealing with nothing more than an anomaly The following chart demonstrates just how common of a pattern these really are Many of these are of course legitimate head and shoulders patterns as well: Before you let your mind wander on what each of those levels might represent, I want you to bear one word in mind: yield Which of these patterns provided the best return, and which ones did you have to “fight against” a little more in order to turn a profit? The answer is as obvious as you would initially believe it to be, and the shorts as a whole paid off more than the longs (on this timeframe) This is not to say that the longs didn't provide some help as well, but if we are looking at these trades from a safety standpoint then the choice is clear When found in the context of trends, Over and Unders (and any other pattern) will give up more yield and at a much faster rate than countertrend Below is a more recent chart displaying trend following trades, confirmed with Over and Unders, and one reversal: There are some patterns which are extremely popular: head and shoulders is one of them Because of this, traders take note when that right shoulder is set in place These patterns are so popular to the point at which, when a “right shoulder” is seen on a higher timeframe some form of a scalp can very consistently be made with them A minimum target on these is going to be the neckline itself, with of course a break of the neckline signifying further follow-through in classic head and shoulders form In trend following situations, this neckline is going to come very, very quickly of course and so I recommend using measured movements on a more macro scale in order to define your target As an example: Here we have a series of Over and Unders found within the context of a trend Those of you who become “scared” at trading smaller timeframes please bear this in mind: many of these are NOT visible on higher timeframes We have a clear trendline break to the upside, and you, as a trader, want to get in In order to find these smaller patterns, you're going to have to scale down You can see from the chart that range-based measured move is applied to find a reasonable intraday target As I write, we are getting shoves to the upside (in a parabolic move), insinuating short-term slowdown There is also another Over and Under at the peak of price, this very moment (not shown in the chart but explained below) As far as other patterns on this chart are concerned (used for the purpose of entering this trend) they are there, but I am going to save them for future posts This pattern in particular is easy to identify and happens very frequently Witnessing these, in the example above, accompanied with bullish bar behavior thereafter is a prime example of what I personally, actively seek on a regular basis Other Pattern Mash-Ups Over and Unders will commonly appear with other patterns, such as triple taps, as well In the case of triple taps, the second to last shove is used as the point at which price ricochets Let's take a look at another example: Being a minute chart above, once again, more detail can be found From left to right on this chart, we have a wider channel turning into a sharp drive, and then another small “channel” which is essentially a tripe tap Within the context of all of this, you have smaller, intraday patterns such as these that can be used to latch onto the underlying movements Note that with many of these, the “right shoulder” can be created very soon after the actual lowest low or high After that, it becomes a matter of breaking trendlines Bullish or bearish bar closes directly ahead of the opposing trendlines (not shown) will suffice The Falsity of “False” Breakouts One term I have never cared for is “false” breakouts There is nothing “false” about these It is normal market behavior: no one is out to “fool” you, no one is out to “get” you, it's just price exceeding a certain level, picking up more order flow, and reversing Most of the time, it is the result of last minute trend followers latching on for a quick trade, and others reversing at better prices When an Over and Under is in place, you may hear the masses calling these a “false” breakout In my opinion, those using the term “false breakout” are regularly getting fooled themselves They believe that their support and resistance levels are essentially written in scripture and when they are broken, the “big guys” are running them down (well the second part of this sentence is true) Two little rules rules will keep you out of this mess: Expect it Understand what is normal market behavior Price running down levels is all a part of a day's routine Stay on the side of the trend, and you'll be the one running then down Using smaller, intraday patterns such as these are going to allow you to latch onto the correct movements In future posts, I'll cover the others listed above As usual, my work/life schedule doesn't allow me to update this blog as much as I would like to, but these are some solid beginner points to use as a framework and add to your trading arsenal Double Top and Double Bottom Pattern Double tops and double bottom chart patterns are perhaps the best and easiest of Reversal chart patterns to get accustomed to trading with price action These two chart patterns are indicative of a reversal and are also visually easy to identify In this article, we will explain the concepts of double tops and double bottoms and also how to trade them effectively What are double tops and double bottoms? A double top pattern is formed when price tries to rally and fails to break a previous resistance level and a double bottom pattern is formed when price drops but fails to break a previous support level These chart patterns are very reliable chart patterns and can be traded in isolation However, traders should bear in mind that there are many instances when a double top or a double bottom pattern can fail The reliability however ensures that the trading approach using double tops and double bottoms offers a very low risk, high reward ratio Identifying Double tops and Double bottoms The following chart illustrates how a double top or a double bottom pattern visually looks like Figure 1: Double Top and Double Bottom Pattern In order to trade the double top or double bottom patterns, the following rules must be kept in mind 10 Double Top Pattern Price rallies to previous resistance level but fails to break any higher Sell on break of previous support or on retest Target is the measure of distance between the top and the bottom, projected from the break out The chart below gives an illustration of the double top pattern and the projected moves based on the distance of the prior intermediary support Figure 2: Double Top Pattern Double Bottom Pattern Price drops to find support and tries to attempt for the second time to break below the established support When price fails to break the support, buy on the break of the intermediate resistance level formed Target is the measured distance between the support and resistance, projected from the break out price Figure illustrates how to trade the double bottom pattern based on the projected price from the intermediary resistance level from previously established support level 58 How to trade the inside bars? When trading with Inside bar price action pattern, the important point to bear in mind is that they often come ahead of an important price move If you look back on the charts shared above, you will notice that right after the inside bars are printed on the chart, the following price action has always been within an extreme sentiment Inside bars therefore can be explained as being somewhat similar to congestion before a break out In figure 3, when we apply the default Bollinger bands, we can notice that the bands first contract, showing a period of congestion while also telling us of a potential explosive price action soon to come This is further validated by the formation of an inside bar just before a big rally explodes as the Bollinger bands start to expand indicating volatility Figure 3: Inside bar break out of Bollinger band congestion The following figure shows another example of the inside bar being identified ahead of a break out from a congestion zone where price was literally trading within a range The inside bar is further validated by a doji candlestick pattern, just a few candles ago and right near the upper end of the congestion zone 59 Figure 4: Inside bar break out from congestion zone From the above examples, we can see how the inside bars can be a good candlestick pattern set up that warns us of a potential volatile price action While most texts talk about inside bars as reversal candlestick patterns, the truth is that inside bars can act as both continuation as well as reversal patterns What determines it as a continuation or reversal pattern is dictated by the overall trend and the larger context As with any candlestick price action trading, inside bars should be identified and used within an existing trading system or when they are formed near support and resistance levels Because the inside bars are validated by two candles, they are more robust than considering single candlestick patterns Another common myth is in placing a stop loss orders just near the high of the previous candle of the inside bar While it is easy to explain this in hindsight, when the market is unfolding in real time, factors such as spreads and volatility can easily take out the stop loss levels, this is referred to as stop hunting in trading terminology 60 Engulfing Candlestick Pattern Engulfing Pattern Definition, Engulfing-Candlestick Pattern meaning What Is “Engulfing Candlestick Pattern” in Forex? The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on Therefore, when looking to trade with the engulfing candlestick pattern, it is essential to first scan the charts from monthly, weekly and daily and then to the lower time frames popualr formation for Price Action Trading ( ? What is PAT? ) What are engulfing candlestick patterns? Engulfing candlestick patterns takes two candlesticks to be identified A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body 61 Figure 1: Ideal Engulfing Patterns For more validity, if the engulfing candle’s high and low engulfs the previous candle’s high and low, the pattern is found to be more valid The chart below shows different examples of various bullish and bearish engulfing candlestick patterns In the example chart below, we also point out a false or an invalid engulfing pattern It is false due to the fact that the open and close (the body) of the second candle does not completely engulf the open/close of the previous candle Figure 2: Bullish and Bearish Engulfing Patterns Why are engulfing candlestick patterns formed? An engulfing candlestick patterns are usually identified near the tops and bottom They exhibit extreme market sentiment In other words, a bullish engulfing pattern tells us that the buyers have overwhelmed the sellers in the market, thus engulfing the entire previous day’s open and closing prices Conversely, a bearish engulfing candlestick pattern tells us of the sellers overwhelming the buyers and thus indicative of a drop in prices Engulfing candlestick patterns can be traded as a reversal candlestick pattern when found at the tops or bottom of a short term trend and validated by support or resistance levels When an engulfing candle is formed within a trend, they are to be traded as a continuation pattern 62 How to trade engulfing candlestick patterns? The first step is in identifying the engulfing pattern within the context of the previous trend, of course not to forget the main prevailing sentiment or the major trend In figure 3, we identify a bullish engulfing candlestick pattern that was formed right near the bottom of a short term down trend We notice that right after the bullish engulfing candlestick pattern, it was followed by a strong Pin bar and subsequently prices started to push higher In the same chart, we can also notice how the down trend started by a bearish engulfing candle formed right at the top ( ? Pin Bar Definition) As can be seen from the examples in this chart along, the engulfing candlestick patterns are strong patterns and when validated by other methods can offer great insights into taking positions based off these candlestick patterns Figure 3: Bullish Engulfing Candlestick pattern Another great way to trade the engulfing patterns is to scroll down to a lower time frame to fine tune the entry For example, if you spot a bullish engulfing pattern on a daily chart, then scale into a H4 or H1 charts to pick out entries with lower risk and high probability In Figure 4, we identify a bearish engulfing pattern formed on the weekly charts While most articles will tell you to place a sell order near the engulfing low with stops at the engulfing high, it is a rather crude way to trade For example, the chart below shows how the bearish engulfing candle was formed But notice a candle later the high that was made was higher than the high of the engulfing candle 63 Figure 4: Bearish Engulfing on Weekly Charts This shows us yet again that when placing stops for trading engulfing candlestick patterns, due caution must be taken Because it is well known that traders would attempt to place their stops just above the high of the engulfing candle, price can very easily push higher to stop out the traders before moving in the original direction To conclude, the engulfing candlestick patterns are two candlestick patterns and when formed near the tops or bottoms can indicate a short term change in sentiment Depending on the price action, price could either start a new trend in the opposite direction or merely head towards making a correction to the previous trend As with any candlestick price action trading, engulfing candlestick patterns must be looked upon within the larger context of the markets and not in isolation 64 Bar Reversal Pattern Explanation of Bar Reversal Pattern, 2BarReversal Pattern meaning What Is Bar Reversal Pattern in Forex? Bar Reversal Pattern Definition Bar Reversal Pattern – Price Action candlestick pattern that can be found on any TF (time frame) ( ? What is Price Action? ) 2-Bar-Reversal pattern – contain candles For a “bearish Bar reversal” the 1st bar must go up The 2nd candlestick must then open and snap back lower In the above example, you can see “2 Bar Reversal Pattern” on chart Trading the 2-bar reversal price action trade set up The bar reversal price action set up is an uncommon trade set up mostly due to the fact that it is misunderstood Price action traders also tend to confuse the two bar reversal set up with other individual candlestick patterns However, despite the confusion, the bar reversal set up in price action trading is a very solid trade set up that is indicative of a reversal The reversal that the bar set up presents can either be a reversal to the main trend, or merely a corrective move or retracements to the main trend In this article, we’ll explore what is the bar reversal price action trade set up, why it is formed and how to trade this price action set up, both within a trading system as well as in isolation What is the bar reversal price action set up? This price action trade set up comprises of two bars The two bars, in order to qualify this pattern must be significantly large and preferably have small upper and lower wicks When a bearish bar followed by a bullish bar appears at the bottom, the bar reversal is indicative of a bullish price action that is imminent Likewise, when a bullish bar followed by a bearish bar is formed at the top, it is indicative of a bearish momentum coming into play in the markets The bar reversal price action set up can be formed in any time frame of the charts What makes this significant is the fact that they are nothing but the two price bars of a higher time frame For 65 example, a bar formation in H1 charts is nothing but a single candlestick on a 2-hour chart Or a bar formation on the H4 chart, is a single candlestick or bar on the 8-hour chart and so on Because the bar reversal price action set up comprises of two opposite sentiments, when viewed through the higher timeframe, they most often signify a pin bar ( ? What is Pin Bar? ) The chart below shows a 2- bar reversal on the H1 charts: When we switch to the 2-hour chart, we notice that the price action of the candles from H1 chart converts to a pinbar type of formation on the 2-hour charts: What does the bar reversal PA pattern indicate? 66 The appearance of the bar reversal price action set up primarily indicates a fight between bulls and bears, or buyers and sellers Often signified by large bearish and bullish bars, when they occur next to each other, the bar reversal pattern often signifies a rejection of lower or higher prices by the markets where the preceding price action candle shows the market sentiment Therefore, when a bearish and a bullish bars appear in the bar reversal method, the sentiment is in the direction of the bullish candlestick pattern and thus indicative of a bullish market sentiment Likewise, the appearance of bullish and bearish bars appears within the bar reversal method, it indicates bearish market sentiment Quite often the bar reversal methods can also include the second candle to be an engulfing pattern price action candle Such patterns are even stronger and valid ( Read more about engulfing candlestick pattern/ Download engulfing candlestick indicator ) Trading the bar reversal Price Action pattern in isolation When trading this price action pattern isolation, the holding period is for no longer than one candlestick or bar It can be more, provided the market gives us further price action clues The chart above shows how a short position was taken based on the 2-bar reversal price action set up After spotting the price action trade set up, a sell order was placed at the low of the 2nd bar with stops at the high of the previous bar The trade could have been exited after the next bar which was bearish and dropped a significant number of pips Or, the trade could have been kept opened but risks managed to break even while price continued to drop towards a previously known support level In the next chart, we show an example of a long trade set up Here, the 2-bar reversal trade set up can also be regarded as a bullish engulfing candle, thus giving it a higher probability 67 The long example of the 2-bar reversal price action pattern here offers a great risk/reward trade when targeting previous resistance levels Trading the bar reversal within a trend The bar reversal can also be traded within a trend, especially at retracements The appearance of a – bar reversal pattern, a bearish candlestick followed by a bullish candlestick can be seen as a signal of the end of the retracement, especially when this price action pattern occurs at a previously identified support zone In the above example, we notice a bar reversal pattern formation which also happens to be an engulfing candlestick pattern The appearance of this pattern near a previously known resistance turned support level is a clear indication that the retracement is complete and that buyers are in control Taking a long position at the high of the bullish reversal bar, targeting the previous high yet again gives trades a very low risk, high probability trade set up 68 Trading the bar reversal price action set up – in Summary To summarize, trading the bar reversal price action set up: They are indicative of rejection of the previous sentiment as the market immediately turns the opposite way The 2-bar reversal patterns are most valid when they appear at the top or bottom of the trends In most cases, the bar reversal patterns indicate a short term change in trend bar reversal patterns are nothing but a single candlestick or bar of the one immediate higher timeframe For example one hour and two hour charts, or hours and hours charts When the bar reversal pattern also shows an engulfing bullish or bearish pattern, it signals a very strong sentiment in the market The bar reversal pattern requires a bit of practice as it can be easily confused for other price action patterns 69 PinBar Price Action pattern Pin bars are a type of single candlestick patterns, which, when appearing on the candlestick chart, offers distinctive clues into the Price Action ( ? What is PA?) that is unfolding Pin bars are not to be traded in isolation, but need to be considered within the larger context of the chart analysis The benefits of trading with the pin bar candlestick pattern therefore makes it best suited to improve an existing trading strategy In order to use the pin bar candlestick patterns, it is best to understand the following: What is a pin bar Why are pin bars formed How to trade the pin bars What is a PinBar pattern? A pin bar is an individual candlestick pattern and is identified by its long wick and small bodies Typically, the wicks of the pinbar should be longer than the body The chart below shows some different variations of the pin bar candlestick patterns Figure 1: Pin bar examples Identifying a Pin Bar candlestick pattern Pin bar pattern is characterized by a long upper or lower wick with a small body relative to the size of the wick with little to no lower or upper shadows Other candlestick patterns that also qualify as a pin bar are hammer and inverted hammer and hanging man type of candlestick patterns In some cases, a doji candlestick pattern can also qualify for a pin bar candlestick pattern 70 Figure 2: Identifying pin bars The most important thing about the pin bars is that the color of the candle is not considered Therefore, a bullish pin bar is identified by long lower wicks and a bearish pin bar is identified by long upper wicks, irrespective of how the body of the candlestick closes Having said that, pin bars can have more validity when the body of the candle also corresponds to the over bias of the pin bar For example, bullish pin bar with a bullish close is more valid and likewise, a bearish pin bar with a bearish candlestick is more valid Why are pin bars formed? Pin bar pattern are formed when prices are tested and rejected, which is visually depicted by the long wicks the pin bar leaves While pin bars can form anywhere on the chart, they are considered a strong pattern when pin bars are formed near support and resistance levels Pin bars can also be commonly formed near a moving average as well as trend lines Pin bars are valid across all time frames, but of course, a pin bar on a weekly or daily charts take more precedence than pin bars formed on lower time frames How to trade the pin bars Figure 3: Bullish Pin bars at support 71 The chart above shows a pin bar rejection near a previously known support level Notice how price constantly bounces off the support level subsequently The identification of the pin bar at the support level shows that it is a strong level of buyers reflected by the long wicks In this case, the pin bar is even more valid as the bullish pin bar also has a bullish close (twice) If you were to trade based off support and resistance, the appearance of the pin bar is reason enough to take long positions when price revisits the previously rejected price near the support zone Figure 4: Bearish Pin bar at resistance In the next chart above, we get to see an example of a bearish pin bar Again, it is more valid because the body of the pin bar is also in the same bearish bias as well A second test of the resistance level after the first pin bar was formed held and a third attempt was made which formed in a weaker form of the pin bar and prices subsequently dropped lower Figure 5: pin bar pattern with trend lines In Figure 5, we have an example of trading trend lines with pin bar confirmation Here, we first plotted a down sloping falling resistance line connecting the first two lows As price continues to fall further with the trend line acting as resistance, towards the end, we notice a strong bullish pin bar This tells us that while prices were pushed lower, the buyers out numbered the sellers, leaving a long lower wick Eventually, a few candles later, price broke out of the falling trend line to rally 72 As can be seen with the above examples, pin bars can be very useful in expressing the market sentiment Although they are powerful candlestick patterns, they are not ideal for trading in isolation There are many instances where despite the appearance of a pin bar, prices continue to break the previous levels that were rejected In figure 6, we can see an illustration of how a pin bar formation failed at support level When viewed in isolation, the pin bar might have looked valid; however, when we consider the bigger picture where price was making lower highs previously, we can already see that the prevailing trend was down and thus question the validity of the bullish pin bar Figure 6: Pin bar failure To conclude, pin bars are easy to identify and when taken within the larger context of trading and provide great insights to the trader Pin bars are best traded with an existing trading system or based on price action strategies such as trend lines, horizontal support/resistance levels or channels and Fib levels ... The cypher pattern can occur on any time frame, but is best to use on H1 and higher 20 Flags and Pennants Chart Patterns Trading Flags and Pennants Patterns Flags and pennants chart patterns are... 14 ABCD Pattern Trading The ABCD pattern (AB=CD) is one of the classic chart patterns which is repeated over and over again The ABCD pattern shows perfect harmony between price and time and is... harmonic pattern The Cypher pattern was discovered and defined by Darren Oglesbee The chart below illustrates a bullish and a bearish Forex Cypher pattern Forex cypher pattern? ?? Bullish and Bearish