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2618 Trade

NZDUSD: Ask 2 ?'s "Where Should Price Go & How Can It Get There"With Jason out of town I’ll be pulling double duties helping out with the morning War Room as well and today I had about six potential trades on my radar. I typically don’t actively trade on Monday’s but I will be keeping an eye on the NZDUSD for multiple trading opportunities. Bigger picture I’m still looking for a chance to short this pair once we retrace to our previous support level, but currently we put in a nice base, which was broken above and could provide as a good place to get long if the market were to retrace to that level. . Sort of like a 2618 type of move. Whenever I make my predictions about the market I don’t just ask myself “where is price most likely to go?” I also asked myself “How is price most likely to get there?” These simple questions have often given me the opportunity to catch the move before the move. Obviously a lot can happen, but I always like to start off my week with a plan of “what to look for” that way I’m dialed in. What now? Well now I sit back and see what the market has to do. Remember as traders it’s our job to react, not to tell the market what it “will” do. If you get the chance check out my Interview on Brandon Clay’s Trading Story website talking about my trading story & setting up a plan of action for you trades tradingstory.com Best of luck this week traders, and let me know what you think about the interview. Akil Stokes Chief Currency Analyst www.TradeEmpowered.com Akil@Tradeempowered.com /@AkilStokesRTM / Forex Weekend Review Videos: www.youtube.com
Long
by Akil_Stokes
28
EURGBP short 2618 strategyTrade succeeded Following the 2618 strategy we might see a short opportunity in the coming trading week/hours. Prerequisite: return on 0,618 level as entry point. Otherwise our Risk Reward Ratio wouldn't be sufficient enough. First taget ist set right at the previous low structure level, second target further down at a big support level. Insecurities about the lasting of Greece in the euro might also be a reason for another euro weakness, but depending on the news which affect the charts quite heavily at the moment, we might also see a movement into the upwards direction. But we're secured with our Stop-Loss.
Short
by tonitrader
2
GBPAUD 2618 TradeLooking at the weekly time frame on this pair, we are at a level of previous structure looking left. If we go down to the daily time frame you can see the market has put in three candles with high test wicks. For me, this shows that the bulls have attempted to push through the resistance level but have been rejected by the bears each time. This would signal a potential shorting opportunity. But how can we get involved? Well moving down to the hourly time frame, price action has put in a double top, a break and close below structure then a retest of the 618 retracement completing a 2618 trade set up. This presents a great shorting opportunity with good risk reward. If price action is around the same level of Fridays close, the more conservative traders could look to shoot for targets at previous structure offering a 1:1 RR . Those more aggressive traders could shoot for extended targets down at the 618 retracement which lines up in the zone with previous structure or even the 786 retracement which comes right in line with the circled level of indecision structure. Whatever happens, good luck in the markets and I hope you all have a good week trading.
Short
by JasonGraystone
1
AUDJPY: Potential 2618 SetupWe have a clear divergence and would be keeping an eye on a potential 2618 setups on this pair. I would love to hear your opinion, feel free to comment, agree or disagree. ----------------------------------------------------------------------------------------- Always wanted to connect, learn and help one another throughout your trading journey? Join our community for FREE at www.facebook.com The only thing you need to 'pay' is your commitment to trading and sharing! Have a great pipping week! www.fxpipsology.com www.facebook.com Cheers, KY
Long
by KarYong
EURUSD: 2 Structure Trades for Shorts Pt. 2To follow up on last week's EURUSD idea, the pair has finally reached higher level of structure that I liked during yesterday's Euro rally. We've now double topped at that level and have broken structure to the downside setting up for a potential 2618 opportunity for those traders looking for a conservative approach to get involved. We do have A LOT of news on the table today including an ECB press conference and a USD ADP Non-Farm Employment Change number. There aren't many expectations from the ECB this morning as nothing is expected to be said in regards to the monetary policy but there may be some Greece based questions during the Q&A and anything regarding Greece has been moving the markets as of late. Before ADP number which is released before the ECB press conference should be of importance as traders will look to use it to predict Friday's massive news day. There are rumors floating around about "ditching" the rate hike due to global worries so the very bullish sentiment that we had on the USD may not be as strong as before. "It may be impossible for the Federal Reserve to raise interest rates until the rest of the world economy improves... the dismal performance of first-quarter U.S. gross domestic product may signal a more permanent slowdown, and that the Fed needed to enter a phase of "watchful waiting" before raising rates." Anyway enough of the fundamentals, the technicals gave me a sell yesterday so I'm still looking short on this pair but it may be an interesting day similar to the Aussie (for those of you in the Syndicate program). Below is a link to the video where I originally discussed the trade setup. The EURUSD talk starts about 11 minutes into it. VIDEO ON EURUSD TRADE www.youtube.com Akil Stokes www.TradeEmpowered.com
Short
by Akil_Stokes
19
USDCAD: a Reversal Play on the Loonie (2618 trade)Last week the Greenback opened bullish on the back of the prior Fridays better-than-expected core cpi readings and strengthened throughout the week. On Tuesday it made strong gains as core durable goods, consumer confidence and new home sales all beat expectations. These positive readings reinforced dollar strength. Wednesday´s BoC rate decision and statement was a non-event; they repeated the Canadian economy is on track and the monetary policy remains suitable for the time being. Regardless, speculation remains rates will be cut again this year. On Friday US gdp came out better than expected but the Canadian gdp was very weak (it fell the most since the 2009 recession) so we saw the Loonie shoot up aggressively, though it failed to make a higher high and gave back most of its gains. This trade candidate is the follow up to “A Continuation Play on the Loonie”, linked under Related Ideas. In total this pair rallied 285 pips after breaking out of a bullish rectangle (see the related idea), but it now looks fatigued (after 2 weeks of upwards price action) and we currently have a basic reversal pattern called a double top on the 4H. Price tested and respected a key bearish trend line when creating this pattern. There are 4 different ways to trade a double top and I am describing the most conservative scenario here. It is depended on a number of steps happening before entering the trade and as such its an “if… then… scenario”. A double top is a double top if the wick of the second meets at least the candle close of the first, while the candle close of the second does not exceed the wick of the first. In other words, price tried to make a higher high, but failed. This retest of resistance with less strength also follows from the regular bearish RSI divergence at the second top. The oscillator was overbought on Wednesday and steadily came off that level while making higher highs, indicating underlying weakness. In the conservative scenario, known as the 2618 trade , we need the following steps to occur before entering: price breaks below and closes below the neckline; price retraces back up, until 618 retracement of the prior leg down; price stalls, stops and reverses at this retracement level. In that case, SL goes above the tops. TP1 = structure level where the retracement started, TP2 = 1272 extension of prior leg down (which has confluence with the top of the bullish rectangle of the prior idea). We would retrace the complete bullish leg after the rectangle breakout. When TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade hunting for TP2. There are 195 pips to be made (if this pair follows all the steps in the script) and the trade has a reward – risk ratio of 1.9 !
Short
by JazzForex
35
AUDUSD: Structure Long with Hidden DivergenceSorry for being quiet this week trading view but I've been running things on the road. Also the markets have been pretty quiet this week so there just hasn't been a lot to share. Today seems to be a little bit better and I wanted to bring a potential buying opportunity on AUDUSD to your attention. I'm already long this pair from earlier in the week. My position has been doing absolutely nothing but sitting there, but with our recent movement in price action another opportunity has appeared as well. This structure based opportunity can be looked at like a 2618. Price action has come down to previous structure support and held, followed by a HHHC and is now retracing. The HHHC gives us a bullish rotation and the present retracement is a perfect chance to hop aboard. Also the fact that the RSI is showing us hidden divergence gives me some added confidence and potentially added points for those of you that trade the Combined Technical Scoring System (CTS). The risk reward looks good on this trade no matter where you look to get long, so the only question left is "How Can I Get Long?" And the answer to that should be simple. What does your trading plan say are your rules for entry on this type of trade? "But Akil, what if I don't have a rule for this in my trading plan?" Well I'm sorry but you shouldn't be taking the trade then. With structure being at the core of my trading philosophy I'd be looking for targets at resistance & stops below support. Best of luck if you do get involved and until next time. "Plan Your Trade, Trade Your Plan" Akil Stokes www.Tradeempowered.com
Long
by Akil_Stokes
25
USDCAD: Potential 2618 SetupWatch this week market analysis video here: www.youtube.com Sit in for our Traders' Development Sequence on the 28th May 7pm to 10pm. RSVP here: www.facebook.com I would love to hear your opinion, feel free to comment, agree or disagree. ----------------------------------------------------------------------------------------- Always wanted to connect, learn and help one another throughout your trading journey? Join our community for FREE at www.facebook.com The only thing you need to 'pay' is your commitment to trading and sharing! Have a great pipping week! www.fxpipsology.com www.facebook.com Cheers, KY
Short
by KarYong
4
USD/JPY - 2618 Trade Explained USD/JPY - H1 - 2618 Trade Explained Having had a double top and now approaching a retracement back into the 61.8% Fib level, we can now look for reasons to short the USD. Unlike patterns we can't just place BUY or SELL orders in advanced. Once we have completed the rules of engagement below, we are looking for confluence within a certain area that all coincide. This in the long term will give us a better success rate. Rules Of Engagement 2618 - Double Top - Break below Neckline / Support - 0.618% Fibonacci retracement - Stop loss above double top - Target 1 at 38.2% Fibonacci - Target 2 at 61.8% Fibonacci Good luck.
Education
by UnknownUnicorn180388
15
EUR/AUD - 2618 & Bat Pattern. The Perfect Setup?EUR/AUD - H4 - 2618 & Bat Pattern We are looking for a D leg completion of this Bat Pattern for our buy orders to be triggered. The C leg of this bat pattern didn't exceed A, so in my rules this is still a valid Bat Pattern. Having now retraced back into the 61.8% Fib level, we can also trade this as a 2618. Rules Of Engagement 2618 - Double Top - Break below Neckline / Support - 61.8% Fibonacci retracement - Stop loss above double top - Target 1 at 38.2% Fibonacci - Target 2 at 61.8% Fibonacci Good luck.
by UnknownUnicorn180388
13
GBPNZD: 2618 Trade setup just completed!!*UPDATE: Stop loss moved to break even* Hello Traders, Here we got a 2618 trade setup on 60 min time frame. The trade is with the major trend and the risk to reward is also favorable. Note that 2nd target is at 127.2 extension which is located exactly at previous structure.You can wait for bullish price action since the market did went below the 61.8% level. I already entered with half of my position and I'll enter the other half when I see bullish price action starting to appear. See the chart for more details. Good Luck :)
Long
by moneymaking
15
EURUSD - classic 2618 tradeThey say that consolidation is the best time to trade harmonic patterns and this definitely is not a lie. If you trade bat patterns, usually you take profit at the 0.382 and the .618 retracement of the AD move. We have reached that .618 retracement now and it's time to take profits. And immediately we have another setup, the classic 26.18 (or twenty-six eighteen) trade . What is required for a 26.18 trade : 1. Double top : the A and C points of our bat pattern 2. Break below close below of the neckline : D -point of our bat pattern 3. 0.618 Fibonacci retracement of previous move : where we take profit now => all requirements for 26.18 trade are met. What is expected to happen : 4. price retracement into previous low (Target 1) 5. 1.272 Fibonacci extension of the previous move down (Target 2) - a potential completion of an AB=CD pattern Stop Loss : should go minimum above the red dotted line but it is safer to put it above the structure of the double top, which would make Target 1 approximately a 1:1 risk/reward ratio.
Education
by Nico.Muselle
42
AUDJPY: Double top 2618I am truly grateful to come across Akil's sharing sometime back, and I must say I really appreciate his sharing and dedication in helping out traders. So for those who are familiar, there is a potential 2618 setup (a methodology shared by Akil) here. I would love to hear your opinion, feel free to comment, agree or disagree. ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Always wanted to connect, learn and help one another throughout your trading journey? Join our community for FREE at www.facebook.com The only thing you need to 'pay' is your commitment to trading and sharing! Have a great pipping day! www.fxpipsology.com www.facebook.com Cheers, KY
Short
by KarYong
GBPNZD: Another 2618 trade setup on 60 min !!Hello Traders, It feels like we just not going to stop getting 2618 trade setups, they are everywhere, LOL :) Alright back to business, so here we have another 2618 trade setup that is near completion. If you look left, we have got our double bottom at the previous structure zone AND the market has broken and close above previous lower high, signalling a POSSIBLE shift in trend. The risk to reward on the first target is very close to 1:1 BUT the risk is only 3 to 4 pips higher than the reward. I am willing to take this much risk. See the chart for more details. Thank you for your time. Trade safe and Good Luck !!
Long
by moneymaking
3