A five-point harmonic reversal pattern drawn as XABCD. After C extends beyond the origin X, price retraces to the 0.786 of XC, and the reversal is sought at that point D. Measuring D against XC rather than XA is what sets it apart from every other harmonic.
The Cypher is a five-point harmonic reversal pattern, governed by Fibonacci ratios and drawn as XABCD. It was devised by Darren Oglesbee.
Here is the skeleton.
First comes a leg from X to A. Then price retraces from A to B, but this is a shallow pullback that stays within the 0.382 to 0.618 of XA.
This is where the Cypher shows its character. The move from B to C extends beyond A. C reaches the 1.272 to 1.414 extension of XA, pushing the range one notch wider than the origin.
Finally, price retraces from C to D, and this D is the reversal we are hunting.
The defining feature of the Cypher is that D is measured against XC, not XA. Where most harmonics (Gartley, Bat, Butterfly) define D as a retracement (or extension) of XA, the Cypher alone takes D as the 0.786 retracement of XC. It treats the whole stretch from X to C as a single ruler, and the point retraced to 0.786 of that stretch is D.
So the Cypher reads like this: after C extends beyond the origin, price retraces deeply to the 0.786 of XC, and the reversal is sought right there.
How to Read
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