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2618 Trade

2618 setup on AUDUSDHi guys, i want to share with you a nice setup that i'm gonna pay attention to over the next days. As you may know, 2618 is a strategy that consists on selling/buying the 618 retracement of the leg that breaks the double top/bottom's neckline. In this case, we can also see that it happens to be right on the previous support (that should act as resistance once is broken). So i know the blue box could give me a nice shorting opportunity. Furthermore, our analysis of the higher timeframe (daily) says that price is at a high location and maybe it's starting a pretty big downward movement. Also, i want you to notice how can we reduce our risk if we manage to find a specific candlestick formation in the highlighted box; in that case i would put my stops just above the signal (and above the black dotted line) and it would give me a much better risk to reward ratio (key factor in every trading strategy). So, if you're a 2618 trader you can take this trade as a traditional one (with stops above the double top and target at the retest of the lows); otherwise you can wait for price to come to the blue zone and then wait for a specific candlestick formation so that you can short the market with stops just above the 4hr resistance (black line). Your choice. If you want to share your standpoint or ask questions, feel free to comment below. Otherwise, see you in the next chart!
Short
by Roker1
5
2618 at market on GBPNZDHey guys, today i want to share a setup which is available at market right now. In this situation price si coming back to retest a daily structure zone (blue rectangle) after a double top formation that's been broken to the downside, as a confirmation signal of the direction it's headed. You can short the market now according to the 2618 technique, with stops above the highest highs, target1 at the retest of the lows and target2 at the 1,70 even handle number. Let's see how it goes. If you have any question, feel free to write below. Otherwise, see you in the next chart!
Short
by Roker1
NZDCAD Short setupA few clues here adding to this case: Price clearly respected; 0.382 fib Trend line Structure And it showed it respect by showing a double top (A) followed by a 2618 (X). To our protection we have structure zone + fib + trend line (Z), all combining. I entered my first position after double top. Second position after 2618 Its a bold target, but price gives clear signals of its path. My 1 enemy here is the bullish engulfing candle on the daily. But.. IF we want to find reasons NOT to enter, we will alwasy find it. We just have to weigh the odds against eachother. As my last post, Im not even worried about the monetary loss, its already gone in my mind (lifts the stress off ones shoulders). I'm more interested in following this! (NZDCAD have previously given clear signals, and then doing the exact opposite, will it continue?)
Short
by timmynorin
2618 on EURNZDHey guys, this evening i'd want to share a setup that i will closely look at in the next few hours and probably on Monday opening. This is a 2618 trade that's forming on EURNZD. If you're not familiar with this kind of formation, it basically consists in selling/buying the 618 retracement of the leg that breaks the double top/bottom's neckline. Essentially it should be a conservative way to trade double top/bottom after the confirmation of the reversal (break of structure). This analysis also aligns pretty well with higher timeframe analysis: on the daily price has created a new structure low (bearish trend confirmation) and it's now back retesting a 4hr structure level (black line) that could stop the price's rally and starts the new downtrend movement. This is what i look for when trading: additional higher timeframe confirmation! It's very important to have bigger perspective. That's why i'd split my position in two parts in order to follow the bigger trend in case i'm right. The first position should be taken at the retest of the new low. Stops above the highest high. If you have any question, feel free to comment below. Otherwise, see you in the next chart! Have a good weekend!
Short
by Roker1
XAUUSD (15min) Short term - Short opportunity with 2618A potential 2618 setup is closing in on 15min XAUUSD. Price is currently meeting resistance at a previous strong support level looking back on higher time frame. Perhaps this could add to the case with the price consolidating around this area, and just maybe push price back down enough for us to profit. Im not looking for extended targets, only retest of the previous leg falling from the second top down to the recent low. Order is pending, lets see if we get filled.
FX_IDC:XAUUSD
by timmynorin
2
2618 & Bat pattern on AUDUSDHey guys, today i want to share this top down analysis on AUDUSD. As you know, i start my trading analysis on higher timeframe (to get a bigger perspective), and then i enter the market in lower timeframe. On the daily chart we recently exited a OVERBOUGHT condition on RSI, that's indicative of an overextended market, near to a Cypher completion. So the bigger picture tells me this may be the starting point of a reversal; therefore i go on lower timeframe (4h) and i see a double top (with RSI divergence) with a break of structure to the downside, and that's another clue in the direction i've chosen on the daily. I could have used 2618 strategy to sell the market at the 618 retracement but in order to have a closer look, i lowered another timeframe; finally we're here. On the 1h chart, as you can see, i spotted a Bat formation completing near to the 618 level. So i've decided to use the Bat completion point as a better entry for a 2618 trade, therefore with stops above the double top and target1 at the retest of the lows. This way i can have almost a 2:1 RR on the first target and possibly a 4:1 RR on the second target. Hope you understand the process that brought me to this decision. If you have any question, feel free to ask beneath, Otherwise, see you in the next chart!
Short
by Roker1
5