GBPUSD - a textbook example of a 2618 trade

FX:GBPUSD   British Pound/U.S. Dollar
Since some people do not know what a 2618 trade is, and the opportunity is there, I thought I'd make an example for educational purposes.

A 2618 trade is probably the safest way to trade a double top or double bottom and although the Risk/Reward ratio is a little less favorable, my preferred way to enter a double top/bottom trade.

Basically, you wait for the downward trend, away from the double top (the upward for double bottom ) to break and close below the neck line of the double top/bottom.

Then, if a retracement occurs, you put a limit order at the . 618 retracement of the previous leg of the move, in the direction of the previous move.

You might miss a couple of double top/bottom trades if no retracement occurs, but percentagewise you'll win a lot more of these trades.

Hope this was informative to you, don't forget to hit the like button :)
Nice example as well as idea to let the people know 2 618 trade setup those who don't know. ;)
+1 Reply
Well, I get the question every time I speak of this kind of trade, so I thought I'd post one when it occurs and provide some information on how it's done.
Hope it is clear.
IamMuffee Nico.Muselle
So far so good. going great. +1 for the sharing.
+1 Reply
Thank you for explaining !
+1 Reply
You're welcome, let me know if you have any questions :)
Dale_Ansel PRO Nico.Muselle
This reminds me a LOT of Jason Stapleton =)
+1 Reply
Yep, I'm a student of his :D
Dale_Ansel PRO Nico.Muselle
Did you complete the 12 week course? And do you attend the live
trading room with Akil?
There should be an extra button for AWESOMENESS. If there were I would have pressed it but since there is not, I just clicked the like button.
Thanks for sharing.
+1 Reply
Nico.Muselle MOD johncarter_oz
LOL, thanks ... :)
I made it out of lazyness actually .. because I did not want to explain it all the time, now I can just refer people to this post :D
Thanks for sharing ... :)
+1 Reply
You're welcome :)
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