Hey guys,
this evening i'd want to share a setup that i will closely look at in the next few hours and probably on Monday opening. This is a 2618 trade that's forming on EURNZD. If you're not familiar with this kind of formation, it basically consists in selling/buying the 618 retracement of the leg that breaks the double top/bottom's neckline. Essentially it should be a conservative way to trade double top/bottom after the confirmation of the reversal (break of structure).
This analysis also aligns pretty well with higher timeframe analysis: on the daily price has created a new structure low (bearish trend confirmation) and it's now back retesting a 4hr structure level (black line) that could stop the price's rally and starts the new downtrend movement.
This is what i look for when trading: additional higher timeframe confirmation! It's very important to have bigger perspective.
That's why i'd split my position in two parts in order to follow the bigger trend in case i'm right. The first position should be taken at the retest of the new low. Stops above the highest high.
If you have any question, feel free to comment below.
Otherwise, see you in the next chart!
Have a good weekend!
this evening i'd want to share a setup that i will closely look at in the next few hours and probably on Monday opening. This is a 2618 trade that's forming on EURNZD. If you're not familiar with this kind of formation, it basically consists in selling/buying the 618 retracement of the leg that breaks the double top/bottom's neckline. Essentially it should be a conservative way to trade double top/bottom after the confirmation of the reversal (break of structure).
This analysis also aligns pretty well with higher timeframe analysis: on the daily price has created a new structure low (bearish trend confirmation) and it's now back retesting a 4hr structure level (black line) that could stop the price's rally and starts the new downtrend movement.
This is what i look for when trading: additional higher timeframe confirmation! It's very important to have bigger perspective.
That's why i'd split my position in two parts in order to follow the bigger trend in case i'm right. The first position should be taken at the retest of the new low. Stops above the highest high.
If you have any question, feel free to comment below.
Otherwise, see you in the next chart!
Have a good weekend!
Comment:
Trade still valid:
Trade active
Trade closed: target reached:
First target hit! Let's roll our stops to breakeven.
Comment:
Second target placement:
Trade closed: target reached:
Out at break even. Price reversed very close to the second target level. That's unlucky!
