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2618 Trade

Long opportunity on AUDCADHi guys, few days ago i've published a shorting opportunity on this pair. But that doesn't mean we can't change our mind. In this particular case, i've missed the short entry but that was in fact a counter trend trade. Now price has retraced back right on the previous resistance that was broken and that could turn into support (black box). Since we have a double bottom, with Rsi divergence, broken to the upside, i think this could be a good spot to long this pair (using the 2618 strategy). Stops below the lows, target 1 and 2 as in the chart above. If you want to share your viewpoint or ask questions, feel free to comment below. Otherwise, see you in the next chart!
Long
by Roker1
Educational Post - 2618 Set up (Recent move on DXY)Sharing some knowledge on a very popular set up used by many traders - 2618 trade set up. The recent move of DXY is the best example of this set up. 2618 trade is essential a counter trend or reversal trend set up. (1) The way I like to use this and found a higher percentage on winning is when price is on a strong trend, hitting a halt and creating a double top -this would be the first sign to weakness in trend. (2) I would watch for a clear breakout of trend, breaking the neck line creating a new lower low - this is the 2nd sign that a change of trend is coming. (3) Watch for price to pull back - This would be the time to use a fib tool to measure. (4) Important - Zoom into and watch price behaviour/price action around 0.618 mark. You want to see reversal candles or reversal patterns upon entry. examples: H1 - M15 - The entry does not have to be exactly at 0.618, trade upon the candle stick patterns and take an entry on the open of the following candle. Some strategies may use a pending order, however, I feel that the safest approach would be watching the price behaviour and action around the area of entry. Please feel free to comment - this is an educational platform so I welcome all views. Thanks for reading.
TVC:DXYEducation
by trungle83
2618 setup in a Trend continuation tradeHi guys, just wanted to share with you this simple structure analysis on EURAUD. As you can see on the left hand side of your screen, this pair finally broke the 1,41 strong support that has been created previously. In this case we know it is a short signal, but we should wait for a retracement instead of chasing the price. So, i wait patiently and now price is up to the broken support that could become resistance once is broken. Thus, i start looking for clues on lower timeframes such as 4H and 1H. On the right hand side of the chart there's the hourly chart of this pair and you can see price has formed a double top followed by a break of structure to the downside, and this represents the selling signal were looking for in order to enter the market. I'll wait for a 618 retracement and then sell at market with stops above the highs and target1 at the retest of the lows. Target2 to be determined. I'll keep you updated. 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
2618 at previous StructureHi guys, just wanted to share with you this simple structure analysis on EURAUD. As you can see on the left hand side of your screen, this pair finally broke the 1,41 strong support that has been created previously. In this case we know it is a short signal, but we should wait for a retracement instead of chasing the price. So, i wait patiently and now price is up to the broken support that could become resistance once is broken. Thus, i start looking for clues on lower timeframes such as 4H and 1H. On the right hand side of the chart there's the hourly chart of this pair and you can see price has formed a double top followed by a break of structure to the downside, and this represents the selling signal were looking for in order to enter the market. I'll wait for a 618 retracement and then sell at market with stops above the highs and target1 at the retest of the lows. Target2 to be determined. I'll keep you updated. 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
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