Cypher Pattern Indicator MT4

The Cypher Pattern Indicator for MT4 provides an optimal solution for identifying significant price formations in forex charts by pinpointing accurate buy/sell zones through Fibonacci extensions and it’s available to free download.

Sounds interesting? Let’s take a closer look at it and bring some practical trading examples.

Introducing the Cypher Pattern Indicator

MT4 Indicator Overview

The download link of the Cypher Pattern MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.

What Is Cypher Pattern In Forex Trading?

The Cypher harmonic pattern is a forex technical analysis formation that denotes a reversal in price action. It was discovered by Darren Oglesbee and is considered a relatively complex pattern formation. Although structurally similar to the butterfly harmonic pattern, the Cypher pattern is not frequently observed in charts due to its distinctive Fibonacci ratios.

How To Identify The Cypher On Charts?

In order for a pattern to qualify as a Cypher pattern, it must satisfy certain conditions, including:

retracement of point B between 38.2 to 61.8 percent of XA, with no excess over 61.8 percent;
extension leg C reaching at least the 127.2 percent level, and no more than 141.4 percent, otherwise it is invalid;
CD leg breaking the 78.6 percent level of the XC point, and price reaching anywhere within 38.2 to 61.8 percent range of the potential reversal zone of D.

Its success rate is hard to compare to other harmonic patterns like Bat and Gartley, however, it works better in calm markets and becomes less reliable in trending markets after news.

Don’t worry, you won’t have to spot these patterns manually as the gauge does the job automatically.

How To Use The Cypher Pattern?

Harmonic Cypher patterns, like other harmonic patterns, require the Fibonacci ratios between points to match for pattern validation before executing a trade. These patterns adhere to precise numbers and shapes, without which trades cannot be made.

After confirmation of the pattern at point D, a trader enters a position at this level. However, the objective is always to enhance the probability of success when employing chart patterns.

To identify the optimal entry point, forex traders can utilize trend reversal indicators such as RSI, MACD, and Stochastic to confirm the reversal.

Settings

There are lots of variables you can customize in the settings window, however, you can leave it default.

How to set up the Cypher Pattern indicator in MetaTrader (MT4)?

Forex Indicator Installation And Download

Download the cypher-pattern-indicator.rar archive at the bottom of this post, unpack it, then copy and paste the cypher-pattern-indicator.ex4 or cypher-pattern-indicator.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Conclusion

The Cypher Pattern is a powerful MT4 indicator that simplifies forex and stock trading through harmonic price structures. Although beginners may perceive it as an advanced trading strategy, the indicator’s straightforward chart demonstration enables easy identification of Cypher patterns, facilitating rapid decision-making regarding trade entries or exits. Furthermore, it complements other trend oscillators such as RSI, Stochastics, and MACD.