The Cipher Pattern Drawing Tool

The Cipher Pattern, available in the drawing tool’s pattern section, is a powerful tool for traders who focus on harmonic patterns to identify potential market reversals. This pattern involves specific Fibonacci retracement and extension levels, helping traders predict price movements with greater precision.

How to Use the Cipher Pattern Drawing Tool

Here is a step-by-step guide on how to use the Cipher Pattern drawing tool on the platform:

1. Load the Chart:

   • Open your account and select the asset or market you want to analyze.
   • Ensure the chart type is set to candlestick to better visualize price movements.

2. Access the Drawing Tools Menu:

   • Navigate to the drawing tools menu, typically located on the left-hand side or at the top of the platform interface.
   • Click on the menu to reveal the list of available drawing tools and pattern indicators.

3. Select the Cipher Pattern Tool:

   • In the pattern section of the drawing tools, locate and select the Cipher Pattern tool.
   • This tool is specifically designed to draw and identify Cipher Patterns on the chart.

4. Plot the Cipher Pattern:

   • Click on the chart to mark point X, which is the starting point of the pattern.
   • Continue to mark points A, B, C, and D following the price movement to form the complete pattern.
   • The pattern should resemble a sequence that matches the specific Fibonacci ratios that define the Cipher Pattern.

5. Analyze the Pattern:

   • Once the pattern is plotted, use it to identify potential reversal zones at point D, which often serves as a key level for entering or exiting trades.
   • Look for confirmation signals from other technical indicators to validate the trade setup.

6. Customize the Pattern:

   • Right-click on the pattern to access customization options.
   • You can adjust the colors, line styles, and other visual aspects of the pattern for better clarity on your chart.

7. Save or Adjust the Pattern:

   • If needed, you can move the entire pattern or individual points by dragging them to a new position on the chart.
   • You can also save the pattern for future reference or delete it if it’s no longer relevant to your analysis.