IF the price goes above point A, creating new higher-high (and forging a point C somewhere inside red box), It can be the development of a cypher pattern, THEN, if the price respect that pattern, IF it fall, creating point D, thereby increasing the likelihood of a subsequent upward movement with a nice risk/reward situation. (ENTER LONG) SL should stay below point X.
I am a financial market analyst based in Porto, Portugal. I provide market forecasts to a group of professional traders, playing a crucial role in assisting them in making well-informed decisions in the financial markets.