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 double top 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 61.8% retracement 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.
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.
Good trading,
Luke
Trade active
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Order hit overnight
Trade closed: target reached
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First targets reached. Close half my position and moved stop loss to my entry point. Remaining position target is 127.% extension.
Trade closed: target reached
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Target 2 reached. Trade closed as a nice pain free winner.