UPDATE #1: Trade is active now.
Here we've another potential 2618 trade setup that is close to completion but this time its on AUDUSD . Market has broken structure (previous LH), signalling a POSSIBLE change in trend at least for short term. See the chart for more details.
I would just go over the 2618 trading strategy very briefly here but I will post a link, below this description, of the full 2 HR+ training video for this strategy. This video is made by Jason Stapleton, from Trade empowered, go check out their website for more information, they are AWESOME !!
2618 TRADING STRATEGY
1. The first thing we need is the market to be in a clear trend (either or ).
2. Then the market must make a (if we're in a ) or (if we're in a ). In the trade setup above, the market is clearly in a .
3. Next, the market needs to BREAK and CLOSE below previous structure to signal a POSSIBLE change in the overall trend. If market is in a then it must break previous HL, if
the market is in a , then it must break previous LH.
4. Then we need to wait for the market to retrace back into the 61.8% Fib level. The Fib level is drawn from the bottom to top of the leg (for break) or from top to bottom of the
leg for break) that broke the previous structure.
5. Our entry is at the 61.8% Fib level BUT taking the spread into account, makes our true entry just above the 61.8% Fib level (for long position) or below the 61.8% Fib level (for short
6. Stops will be placed 10 to 20 pips below the low of the (for long position) or above the high of the (for short position).
7. Our 1st target will be at the close of the last candle, from where the market started to retrace back to the 61.8% level. For the AUDUSD setup above that will be at close of the big green candle.
Our 2nd target will be at the 127.2% Fib extension that is drawn for the leg that broke the previous structure (LH or HL).
I believe I have covered everything in this short outline for the 2618 trading strategy. If you would like to get more details on this strategy or see more examples on the charts, then check out the training video, link is posted below.
Here's the link for the 2hr+ training video: https://www.youtube.com/watch?v=Esx1CLtq...
Here's the Trade empowered website: http://tradeempowered.com/
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Good Luck :)
Sometimes i use only closing price to draw my patterns.
See below chart and you will see that 127.2 has been fulfilled my friend.
And you will see that pattern completion @ 78.6% is fulfilled nicely too.
Just my flexible rule.