18 Jul EUR AUD Swing Short Follow Up Analysis
As there’s no new set-ups ready for entry right now (including AUD:CAD detailed in the previous post which still awaits confirmation), I thought I’d have a look through some old trades and found something interesting with EUR:AUD.
It was originally taken (see post here) as a “Box Trade” short. Box Trades are fairly rare set-ups, but thus far every one that I’ve taken has been a success.
With EUR:AUD I covered the position at the 61.8% fib (circled) which seemed sensible at the time but re-visiting the chart and I realise maybe a little more attention should have been given to the overall target.
Going through previous Box Trade set-ups and most of them (not all) appear to have a measured move target, i.e the width of the original “box” becomes a measurement for the price target once price has failed to re-enter the box.
In the case of EUR:AUD that target happens to coincide pip-perfectly with the 161.8% fib retracement of the previous swing move.
I’ll let the chart explain and you can see, this is something that should warrant serious consideration when trailing stop losses on future Box Trade set-ups:
It’s almost identical the USD:CHF one taken last year, and I think (if the target is achieved) it would be fair to say this is simple TA at it’s best.