Hi 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!
Love your 2618 trade. I followed your strategy to the letter or as much as I could grasp of it. I'm running with the first up-leg (I'm not sure if hat was your intention, but it seemed a harmless thing to do. POE was 0.75863 TP1 is 0.76353, TP2 0.76518. Meanwhile I sell limit order has a POE 0.76555 and TPs based on areas of past resistance at 0.75999, 0.75425, 0.74842 and below.
Roker1
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@Glendooie, good job! Even though i wouldn't trade the up-leg since it's not part of my strategy.
Glendoonie
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@Roker1, with good reawson no doubt. No point being in a trade that appears to be going sideways ...
Glendoonie
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@Glendooie, GBP/UED looks to have the 2618 sell setup - do you think?