Forex glossary
Cypher Pattern
Cypher is an XABCD harmonic structure with B retracing XA, C beyond A and D at a 78.6% XC retracement. TradingView's drawing-tool documentation uses B at 0.382–0.618 XA and C at 1.13–1.414 XA. D identifies a candidate reaction zone without guaranteeing reversal.
Illustrative example
How does it work in practice?
Assume X is 100, A is 110 and C is 113. Retracing 78.6% of XC gives D at 102.782; using XA as the base would produce a different level and misidentify the structure.
A case to work through
A different retracement anchor
Hypothetically, X=100, A=110 and C=112; the other candidate conditions are checked separately.
- XC spans 12, so 78.6% equals 9.432.
- D=112−9.432=102.568; retracing XA from A would instead give 102.14.
What follows? Mark D against XC under the selected convention.
Example boundary: Other points and tolerances need checking; a correct anchor does not guarantee a reaction.
A useful distinction
Cypher Pattern / Gartley Pattern
Cypher under this convention anchors D to XC; Gartley's characteristic D retraces XA.
Check your understanding
Select the correct leg when calculating D.
Show the answer and explanation
84.28
100−0.786×20=84.28.
Anchors, ratios and rules
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Related terms
Sources and documentation
- TradingView – Cypher drawing tool
The tool's Cypher ratios, including D retracement anchored to XC.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.