We can see from the arrows I drew on the chart, the market was in an uptrend till he reached the double top and didn't break upward to a new structure high.
After the double top, we notice a break of previous support and reversal. Then a retracement to the 61.8% Fib.
This set-up is called a 2618 Trade. Entry should be to short at the 61.8% with SL above the High of the double top.
After many days, we can see that the price is going upwards, but the trade is still Valid since it did not hit our SL yet.
It is not necessary to take the trade or be involved in trading the 2618 on the daily chart. But from the analysis of the Daily Chart, we can have ideas on how the market might behave on lower time frames and shorter terms.
Hope I explained it well. I would appreciate any experienced trader opinion on my analysis.
All the Best!
After the double top, we notice a break of previous support and reversal. Then a retracement to the 61.8% Fib.
This set-up is called a 2618 Trade. Entry should be to short at the 61.8% with SL above the High of the double top.
After many days, we can see that the price is going upwards, but the trade is still Valid since it did not hit our SL yet.
It is not necessary to take the trade or be involved in trading the 2618 on the daily chart. But from the analysis of the Daily Chart, we can have ideas on how the market might behave on lower time frames and shorter terms.
Hope I explained it well. I would appreciate any experienced trader opinion on my analysis.
All the Best!