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2618 Trade

Short trade on EURUSDHi guys, as you may know already, on EURUSD we're testing a very strong resistance area, namely that highest highs that were made over the past years (3 or so) and therefore we need to be very careful of what's happening on the lower timeframes. Last week there was an opportunity to get in at the double top's completion, but i wasn't around and i couldn't make it. It would have been a nice and clean winning trade, but that's part of trading. You'll lose lots of opportunities over your trading career, but the beauty is that there will be always another chance around the corner, so keep up with me and i'll explain you why i'm interested in shorting again. As you can see the double top's formation has been broken by price action (with the last down impulse) and it could now retrace back and give us a nice entry point to short again this market. All this will be valid till we get a touch of the 1.1950 level (dark green line) where i think we could see some buying pressure. Stops above highs, targets as shown below. If you have any idea/question, feel free to comment below. Otherwise, see you in the next chart!
Short
by Roker1
2
Alright, EURNOK 2nd Time Around Bearish Bat ShortMy last EURNOK didn't go quite well, but thats okay, win some lose some. Anyways, I am going to strike this pair again. Going for a 26.18 and a Bearish Bat pattern at the same time forming. The 2.618 trade is a great pattern invented by Jason Stapleton, kinda high risk pattern but is great as its always going to have a greater than 1:1 risk reward.. I am paring this 2.618 pattern with a bearish bat, together, will give me less risk more reward. Lets see, price needs to bounce just a bit higher for me to get in.
Short
by JackDale
GBPUSD-M15- The 2618 trade setup (educational)Im closely following price action on this pair. I found this textbook 2618 trade setup. The 2618 trade is essentially a less aggressive approach at entering the classic double top/bottom pattern. It uses trend continuation type of entry in order to get involved in a counter trend opportunity since before entering, the trader seeks confirmation that the trend has reversed. 2-618 stands for a double top/bottom (2), followed by a 61.8 retracement. When looking for this trade setup the trader must first identify a double top/bottom. After a valid double top/bottom has completed, the next step is for price action to break and close past the midpoint of the fore mentioned pattern. After this occurs, the trader will then look for price action to make a retracement of at least 61.8, pushes back into the previous structure support. Traders looking to take the 2618 setup are either looking for a less aggressive approach to enter, when they predict that the market is at a turning point, or looking for a second chance toget involved in a trade that they had previously missed. Best regards.
Education
by FullTimeTrader
2
Bitcoin: The case for a move down.Bitcoin has grinded its way back to the 61.8% fib retracement of the fall from ATH to the recent lows of 5550. The 61.8% also happens to line up with previous support and the psychological level of 7000. Would not be surprised to see a move back down into 6000 and lower over the next few days. If 7000 does not hold to the upside 7200-7400 would be last bastion before a continued press higher and new ATHs. However I do not recommend shorting this beast as that's a good way to burn your account. Let me know your plan / thoughts below on bitcoin from here. Good trading all. Luke
BITSTAMP:BTCUSD
by Beebags
2618 Second Chance on EUR/USD: Triple play potential.I'm looking at a 2618 trade-setup on the 60 minute for a second chance at entering Short EUR/USD. At the end of last week, this pair closed forming a double top (yellow triangle). As we came into the beginning of this week (today obviously), price action has confirmed the double top shorting opportunity and retraced nicely into 161.8% extension of the right leg and low of the double top and has begun a bullish retracement subsequent to the extension down. This should provide a second chance at a Shorting opportunity if price retraces at least 61.8%. I tend to look for entry halfway between the 61.8 and 76.4% retracement as in my back-testing, price has shown a tendency on occasion to retrace higher. I'll be looking to place Stops above the high of the right leg of the DT. As for targets, price action is in the process of forming a Bullish Cypher (I'll post a separate analysis on this later). I'll, in anticipation of this harmonic pattern completing, be using the completion level as my target for the Short. Overall, I have a short term/limited bullish view on this pair to about the 1.1775 level which would potentially be the completion point of a 4H potential Bearish Cypher (post that idea later as we get closer to completion). As such, I anticipate the completion of the 1H potential Bullish Cypher to act as the catalyst for the predicted bullish momentum. The bullish bias is limited not only because of the anticipated Bearish Cypher, but mainly following from the spot on analysis posted on this pair by Akil Stokes (see link below-Thank you Chef). Price action has broken the neckline of the Daily Chart Head and Shoulders and has since found support at about the 1.1612 level. As such I anticipate some upward corrective movement/relief, before further downside is achieved.
Short
by scorpiousg