Here is a 2618 opportunity setup on GBPAUD . This is a countertrend trading opportunity.
The process I use to identify such an opportunity goes as follows:
1) Look for a clear or bottom, as marked with purple circles on chart
2) Wait for a CLOSE below the lowest/highest price point in between the first and second top/bottom
3) Draw with your fibonacci tool from the highest high of the SECOND TOP, to the lowest point of the break below the neckline.
4) Place entry order at the of this move.
5) Place stop loss 10-15 pips above/below the highest high/low of the tops/bottoms
6) Place profit targets at the 100% 127.2% fibonacci extensions of the move
That is the basics framework to the system. I learned this trading style from Jason Stapleton and Trade Empowered. They have a free training to teach this strategy if you wish to explore more.
Target 1: 1.74350
Target 2: 1.73700
2618 trade setups will give the trader around a 1:1.5 risk-to-reward profile.
If you found this idea useful, leave a like, I appreciate the feedback. Or if you have any questions regarding the setup, leave a comment and I will get back to you.
Remaining position target is 127.% extension.