Inside the 2.6 Strategy: Precision Trading Through Mathematics📈✅

Added: 2026-05-11

[00:00:00]Hi everyone, this is Davis and uh I had some people requesting me to do the 2.6 trading strategy on BTC or any other pair but specifically BTC this time. So first of all, as always, we start off by identifying the trend. So after understanding the trend, you're going to start marking out these zones to avoid confusions. the higher higher low and the higher high a higher low. Now what do I base on to validate a a valid break of structure?

[00:00:42]What do I base on? I base on a few things. When price breaks structure, now let me just go to a bigger. When price breaks structure and then pulls back 50% into that structure, you know that it's a valid trend.

[00:01:03]But when price breaks structure and then pulls back 20% into that move, you know that trend is still missing a real valid pullback. So now let's say uh from this uh higher high to this higher low to this higher high and then price pulls back to here and then pushes away. You should understand that here where price has pushed is not so correct.

[00:01:37]Could be real. If the momentum is too high, price might just give you a 20% pullback. But if the momentum is not too high, not too low, price is going to give you a correct pullback, which is this. It's going to give you a correct pullback here. And then it goes to on to break another structure. Okay.

[00:02:02]So after understanding that we're going to mark out the breakthrough structures that we have that are actually valid.

[00:02:10]First off with that one. Second this one. Now somebody might be wondering why haven't I marked this high? Because most of this price action above here was a sudden impulse of the news. Right? So after marking out the breakoff structure here you are free to mark out the inducement or the actual breakoff structure but the inducement is going to give you a very good riskto-reward ratio. That's why I've marked out this internal internal structure. All right. So after we mark out the breakoff structure you're going to get your price range tool. Mark from where you marked the break of structure up to the lower high that was created.

[00:03:07]Okay. So after you mark that as your lower high, you're going to come to your calculator here.

[00:03:16]Since the price range tool is giving us 2 955, I told you you only take the first numbers before the point. So you get your numbers which is 29 55ide by 2.6 it's giving us 1136.

[00:03:34]Okay. So you get your price range tool here. You measure from where the break of structure happened which is giving us um 1 36. So we're going to move this price range tool until we see 1 36.

[00:03:56]So this is 1134.

[00:03:58]That means that I can actually base on here because um these points are not they they do not have much of a difference within them. Right. So let me extend this to the right. Yeah. So 1136 falls within this range. All right. So after going down to the smaller time frame, you're going to wait for price to tap in fully into that zone where we go to 1136.

[00:04:29]You let price play. So this time price plays out and then it pushes out of the zone and then close closes within the zone. So what do we do? We wait for price to give us a clear set of price action which is that. So when I see something like this, I usually go to line chart and mark out.

[00:04:56]I'm going to come a little bit lower because now you see this is now clear in a smaller time frame. You're going to mark this zone the same way you marked the zone that got broken. It is now giving us 52 9. So you're going to come to your calculator here and you press 5 29 / 2.6 which is giving us 203. So 203 we're going to use this same tool until we see 203. That's going to be our entry. So 201 falling in this range here which indicates that this is now our sniper entry a selling point which we are going to use to sell the market. Our stop losses can be on this high or just above the high just to give the trade some breathing space.

[00:05:59]So for the TP, when you are setting TP, I need you to look at the previous price action and look at the key levels that were actually left behind. So in this case, I'm going to go back to the 1 hour time frame, which is where I got this setup. So in this case we don't have any any symbol of liquidity here but on the far left here where we got the actual zone we are having this zone here. If I go to line chart you could see this was a very very spiky zone. It was a sharp turn and usually price uses those sharp turns as entry or exit levels. So we're going to set our TP there.

[00:06:49]And for context, I'm going to go back to a smaller time frame, which is 5 minute time frame. So once I come back to 5 minute time frame, we set our TP there.

[00:06:58]We wait for price to play out. You do not force the trade. If it doesn't tap you in, just look for another setup. If it taps you in, good and well.

[00:07:22]So there you can see that it actually hit our TP with full full momentum. You can see here we never we didn't get stopped out because we gave price a breathing space for the stop loss. But if you usually put your stop loss tight on the upper zone or the lower zones, you're going to get stopped out very immaturely and then price proceeds to go to your direction.

[00:07:58]Always give your price breathing space.

[00:08:01]So after that trade giving us um 144 pips.

[00:08:07]Now looking for another trade here >> is another example on Euro USD. He start off by identifying the trend. So we can see this trend was in an up a downtrend.

[00:08:20]Now it's shifting to the uptrend. First here we got a very big break of structure which is our box.

[00:08:30]Okay. So this being BOS and then we had this zone tapping into this was a valid zone. So this makes these this zone here is valid and this.

[00:08:47]So it's coming from up like this um down here and then up and then down. Now we started off with price breaking above here. Okay, which is indicating a change of character. All right. So a change of character is when market changes its behaviors like the way you hear the term changing your characters to something else. That means market has changed its behaviors from downtrend behaviors to uptrend behaviors. So now as we can see here price has changed these behaviors to the upside. All right. So that means whatever setup we look for we're going to look for buy setups. All right. So we proceed. I told you when price changes character you either need one more break of structure to confirm the trend or just enter risky.

[00:09:50]But one more break of structure is usually adding icing on the cake. All right. So if price breaks this high, we're going to be on a safer side. But if it doesn't, we might be cooked in a long time because we might set our sell positions somewhere on a wrong wrong price level.

[00:10:15]We see if it actually breaks above here, builds up and then we finally get the break of structure. Now this confirms that the change of character was not actually just liquidity sweep.

[00:10:30]It was a real change of character. So now with this um type of candle we know that the momentum in the market is now allowed and what do we have to do? We can still use the internal structure to get our entry zone. But then as you can see the momentum is so high. If I'm to measure this area and the whatever area that I get from this area is going to be our continuation to the upside. Okay. So after identifying the break of structure, we're going to mark this exact break up to this low. So understanding this uh price range tool is giving us 42.7.

[00:11:18]We only need the first numbers.

[00:11:21]So you come to your calculator. 42 / 2.6 is giving us 16.

[00:11:29]So you get another price range tool. You move until you get 16 as your number.

[00:11:38]16 comes about here. Okay. So you mark out this entire zone. All right. This is now going to be our selling point. Okay.

[00:11:50]So once price reaches there, we need to take action in selling if it rejects that level. But if it runs through it with a very big bullish candle, we're going to keep on buying. Okay. So let me play price.

[00:12:11]price reaches there and then gives us a beautiful rejection. A rejection is when price touches the key level and then closes within that key level, not outside the key level. Hopefully you guys understand.

[00:12:27]So with that, we're going to wait until we get a confirmation.

[00:12:35]In this case, um let me illustrate just a little bit here. Once let's say this is our key level and then price reaches it and then taps in closes within the zone. Okay, we're going to wait for price to create an internal liquidity which is going to look like this. So when this area is broken, okay, now let's say it's broken, but we don't know where it's going to stop. So this is broken on the level.

[00:13:12]You're going to get your price range to mark from the high of that internal zone to the low of that internal zone.

[00:13:21]Whichever number you get, digits you get, you divide them by 2.6. 2.6 is going to 2.6 answer is going to give you the entry point you're looking for. In this case, let's say it has given us this. This is going to be your entry, a sniper entry.

[00:13:41]You do not enter on the first tap in of the zone. You only enter when price taps in. Gives you the internal liquidity.

[00:13:51]Could be in form of double tops, trend line liquidity. But as long as you have a point that is freshly broken, that's what you use. Back to the live chat.

[00:14:09]So once price stops in, we're not going to sell immediately.

[00:14:14]We're going to wait for price to give us the internal zone that we're looking for. if it gives us the internal zone. Now, this impulsive move here is what I'm going to use as the internal zone. If this level gets broken, I'm going to measure from this high, its high here to whichever low that it's going to create. And then when it breaks, this zone is going to give us a selling point here to continue the market to the downside. Okay.

[00:14:51]So let's play price and see when a break structure happens whenever a zone has been formed by the news we do not mark that. So this week here we're not going to mark it rather we're going to mark the correct price action leg that has been corrected. So once price breaks this area, we know now that we are looking for a level to sell from. It's going to be a sniper entry. Measure from the high to the low. We're not going to use this week because it was influenced by the news. Price range tool is giving us 20.

[00:15:35]So you come to your calculator, you put 20 / 2.6, which is 7. Okay. So, you're going to move your tool until it gives you seven. So, our entry or our sniper zone is going to be on this level.

[00:15:55]This is refinement. Refinement is going to save you a lot of things. Refinement is going to save you bigger draw downs.

[00:16:03]uh entering when the market is still has to consolidate all those unnecessary chaos within the market. So the black line this is where seven comes about. So this is going to be our entry stop loss just above here.

[00:16:20]So for take profit, we're going to use this the level I mean the time frame we used when we are getting this trade which was 30 minutes. I'm going to go back to 5 minute time frame and I'll let price play out. You can now set your limit if you are done with refining the zone. So, this is what happens. We're going to use this area as our TP.

[00:16:56]And I'll teach you in the future how to use these impulsive moves as liquidity or as entry points.

[00:17:07]So, we let price play out and see how the trade went. So, price stops immediately. It drops. Oh my god.

[00:17:21]Wow.

[00:17:21]>> This is no waste of time. So this price gives you a straight heat of TP. So one last example on Euro USD. So here we after marking out that we get another break of structure which is this. We're going to mark from the high to the low or from where the break of structure happened to the high that influenced the break of that structure. In this case, it's going to be this to this, which is giving us 18 and you put 18 / 2.6.

[00:18:03]It's going to give you 6.9.

[00:18:06]So you move your price range to until you get six. Basically you can use a seven or a six because it's just a difference of one point. Okay. So after getting a zone.

[00:18:21]So this is going to be our buying area for price to come and tap in here and then shoot to the upside. Okay.

[00:18:30]You're going to go to the smaller time frame. You're going to wait for price to actually tap into the zone. Let me use 3 minutes.

[00:18:42]Um, if I play price now, so price stops into the level, but once price stops you in, you're going to wait for it to give you a clear direction and it gives you liquidity, which is you're going to base on to catch a sniper entry for price.

[00:19:05]So, we got a zone that has actually been formed here, which we're going to use to measure and get our sniper entry. Okay.

[00:19:21]So, let me get rid of the black line.

[00:19:23]It's too thick, confusing. Okay. So, once price breaks here, we're going to measure again with our price range tool.

[00:19:32]Whichever digit or answer we get from the price range tool is going to be our sniper entry.

[00:19:44]So price plays out.

[00:19:48]We wait for it to break the structure that we have. Price breaks there. We're going to get now and mark these micro breaks of structures. they also matter.

[00:20:02]Okay, if you want you can use them as again entry points which is giving us 3.5.

[00:20:11]So 3 / by 2.6 which is giving us one. So one might be our turning point for the trade to actually either sweep out this low to sweep out that low or continue to the upside. But if it creates any new low on this trend could might not necessarily come back here on this zone but it can actually keep on going but creating uh zones within the trend.

[00:20:51]Something like this this this.

[00:20:56]So, we either use one of these zones to enter and not be left behind. Okay. So, with that being said, we're going to wait for price to actually pull back here and we'll wait. If it breaks here, that's okay. If it creates another zone within this range and then it breaks it, it's the one we're going to use. So, if I continue to play price, you're going to see that price actually created that little zone.

[00:21:32]So, this little zone here is now the one we are going to focus on to.

[00:21:40]If it's broken, we're going to wait for price to break it and then we use the answer that we got to calculate our entry. Okay.

[00:22:06]So price successfully breaks this zone. All right.

[00:22:12]So when it successfully breaks the zone, we're going to get our price range tool and then measure from where the breakoff structure happened to where the high that influenced the breakoff structure is. So once we get that which is six, you come here to your calculator and put 6 / 2.6 six which is giving us two.

[00:22:36]Okay. So you move your price range tool until you get two. Two is going to be now our entry zone. All right.

[00:22:46]Since we never gotten any reply on the main order block. Okay. So, this is now our entry and we're going to use this to rally price to the upside. Uh, stop loss we can put it here. Could be 20 pips, could be 30, I don't know.

[00:23:13]Um, so price reaches there. what we are targeting now. We're going to come back to our bigger time frame which is 15 minutes. Since we had a sale on this zone up here, we're going to use this as our liquidity.

[00:23:30]Okay, why you might ask? Because there are some swing traders who actually hold position for days, weeks, and even months. Okay. So, we aim to to where their stop losses are and then we use it as our liquidity. Stop loss could be lower here to give price room for breathing. And then we go back to our small time frame and we play price which it has already tapped in. Okay. So, we play price. I'm going to give it seven which is so price touches the zone immediately it moves out heading to RTP and I'll show you what happens when price breaks another structure how you can use that same structure for re-entry to continue with the trend.

[00:24:32]Okay. So, price plays out and I'm just going to put it at three.

[00:24:46]So, price ends up hitting our TP. So, if you guys need classes about this strategy, feel free to reach out to me.

[00:24:55]Thank you so much for watching.