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2618 Trade

Gold - XAUUSD (Harmonic Patterns and Wave Analysis) - 1h ChartConfirmations for Cypher Pattern: - A to B must touch 0.382 but cannot exceed 0.618 - B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension) - C to D must touch 0.786 of X to C - First TP at 0.618 of D to C (Fibonacci) - Second TP at 0.382 of D to C (Fibonacci) - Third TP back to point C Between A to B we can see a minor 2618 trade been completed with some confirmations: 2618 confirmations: - Double floor - Measure impulse - Retracement at 0.618 - TP at -0.27 Double Floor + 0.618 = 2618 At 50% between C to D we can see a major consolidation with minor harmonic patterns been completed within, first there was a shark pattern with a bullish impulse and began gartley formation for bullish continuation towards D completion of the Cypher Pattern. After Cypher Pattern was completed bearish impulse began with an Ending Diagonal been formed - 5 clear points - 1 and 4 overlap - Clear consolidations between each point 0 to 1: First I measured minor pullback by placing 0.236 below consolidation, got 0.5 as higher high of that pullback and went straight towards -0.618 for perfect support. 1 to 3: Afterwards major pullback retraced back to 0.236 making previous lower low a new higher high, got that good consolidation at top for bearish continuation towards point 3 3 to 5: Between 3 to 4 we have and ABC pattern retracing exactly to -0.618 making previous lower low a new higher high for Ending Diagonal completion. I measured 2 to 3 impulse with Trend-Based Fib extension and got 1.272 exactly at point 5 where it left a wick, plus got -1.618 from minor pullback as support near 1.272. At this point I expect some type of consolidation or retest at point 5 for bullish impulse towards 0.786 - 0.886 area. Good Trading. - 1h Chart
FX_IDC:XAUUSDLong
by DanielParra99
1
EUR/AUD 2618 SHORT SETUPI'm projecting that this pair FX:EURAUD will drop to the DZ (Demand Zone) in the 1.5160 area. A few things we have seen so far that bring about the 2618 trade setup on this pair is: 1) a double top formation; 2) the neckline of that double top broken; 3) price retracing into the 61.8% fib region; 4) multiple trend line retests and rejections. Price is flirting between the 61.8% fib region and large quarter point 1.5750, showing a little bit more buying power in the market right now. I want to be conservative with this trade as it is a weekly swing that could net a potential 600+ pips, so i'm waiting for strong weekly bearish candle to close below the neckline of that previous double top, which is at 1.57753. All feedback is greatly appreciated. Thank you!
Short
by JFibonacci
EURUSD Pullback Long SetupEURUSD has almost reached 61.8% retracement of its setup bullish leg. Demand is expected to enter around this area. Limit buy orders at 1.1630, the 61.8% retracement area, and stops around previous low of 1.1528 is the trade setup. The context to the left of the chart is quite bearish, making this a lower probability reversal trade with a decent reward for risk. 2R-3R targets are achievable if buyers prevail here. This trade setup should be approached with caution and strict trade & risk management.
Long
by Zoen_Trieste
2
High Reward Beautiful Bat Pattern into 2618 Fib Inversion trade Markets continuing toward a large previous structure area that and would complete the Bat pattern lined out proving a case for short entry at the .886 retracment of X to A Pullback is also into an inverted 1.618 extension off of a double bottom that breaks structure that would confirm again an entry for shorting, in 2618 trade looking for pullback into .618 retracment giving a good long opportunity - also more confirmation the pattern will be accurate. Targets will be into Prev structure at .618 retracment at 128.5's Stops above 130.510's
by tmh85
2618 (Double top & 0.618 pull-back) - do not miss it!!In the last couple of TAs I have mentioned the “2618 pattern” and have been asked what 2618 means. Sorry for taking it so long as it took me quite a while to put everything altogether. But, as promised, I have explained below the rules and trade setups for the 2618 pattern. What are the rules/setups/steps for 2618? 1. Form a double top (Note #1) 2. Neckline has to be broken 3. After price found support at point (b), wait for pull back to 0.618 fib retracement of (a)(b) 4. After price retraced to 0.618, look for confluence and sell (eg. Structures, trendlines , double top on a lower time frame, rsi divergence, bearish pin bar , inside bar break down etc.) (Note #2) 5. Stop loss to be set above double top 6. Set Take Profit levels (Note #3) Note #1 (Double top): The first step for the formation of 2618 is to form a double top at key resistance levels. Why at key resistance levels? Because we want to avoid fake double tops which can occur occasionally. There are some variations between various resources (books, websites) regarding the definitions of “double top”. The main differences occur where: a) Some said for a double top to be valid, the wick of the 2nd top cannot exceed the wick of the 1st top; whereas, others said: b) The wick of the 2nd top can exceed the wick of the 1st top but the candle close of the 2nd top CANNOT exceed the wick of the 1st top; or c) The wick of the 2nd top can exceed the wick of the 1st top and the candle close of the 2nd top CAN exceed the wick of the 1st top; or d) The wick of the 2nd top meets at least the candle close of the 1st top; or e) The body of the 2nd top cannot exceed the body of the 1st top Personally, I would say all the above definitions work just fine although I do prefer definition a) because it means that the selling pressure is strong and the bulls fail to make a higher high. When there is a higher high formed in a downtrend, it can mean the downtrend has reversed and therefore you might not want to sell when the price pulls back to the 0.618 fib retracement. Note #2 (0.618 retracement): When the price pulls back to 0.618, it does not mean to sell straight away. There must be more than one reason to sell other than the 0.618 retrace. The more reasons the better. In this example, you can see there are certainly structures (key resistance levels) at the 0.618 retrace. As well, there was a double top formed on the lower time frame. Consequently, you can sell. After BTC hit the 0.618 retrace the first time, the price dropped from $9735 to $8650. but quickly bounced back to the 0.618 retrace level. That was a second & better opportunity to sell. Not only did BTC form a double top on the larger time frame, but also with a bearish divergence on the 4hr time frame. Accordingly, you have more reasons to sell. Note #3 (Set take profit) Same as the rules of “Double top”, there are some variations as to which price level should you take profits. Personally, I would stick to the below: 1) First, take profit when risk/reward ratio hits 1:1 (recommend to take 30% - 50% profits and adjust the SL of the remaining positions to break-even) 2) When price hits the same price level as the low after the neckline is broken ((b) point in this example) 3) When price hits 1.272 fib extension of (a)(b) 4) When price hits point (d) (using AB=CD pattern. If you are not sure what the rules of AB=CD are, you can refer to my previous TA in which I have attached the link below) 5) If in a one-way market (heavily bearish/bullish), you can always keep 10% to 20% of your positions and take profits when risk/reward ratio hits 1:5 or even 1:10 If you have enjoyed this post and would like me to do more of this kind of educational post going forward, please give it a "LIKE" as this post has taken me more than 4 hours to put everything together. Lots of love, Taiwan Bear
BITSTAMP:BTCUSD
by Taiwan_Bear
59