Here, I am looking for a reversal. The market was in a nice move but this has now occurred. There is already a break at the bottom of the so I am now looking for a pullback at the 61.8 retracement level to give myself that extra bit of confirmation. I will have a sell limit in place at that level. This trade is known as the 2618 trade.
My stop loss will go above the and that level has also held good resistance in the past. My first target will be at the low of the break and my second target will be at the next level. IF the first target is hit, I will take off half of the position and move the stop loss to break-even for the second half of the trade, ensuring a risk-free trade.
Thank you for your support.
Risk: 40 pips x 2 = 80 pips
Reward #1: 40 pips. R:R = 1:1
Reward #2: 85 pips. R;R = 1:2.1