I'm somewhat late posting details of this trade as it was entered by an electronic limit order at a time where I had no internet connection to tweet it live, although details of the trade possibility were posted on the ADVFN forum in advance.
In short, here is what attracted me to this trade, entered at 1.4260:
Apologies again for taking so long to provide an update, just haven't had the time to concentrate on swing trading.
The last swing trade taken for the blog was the AUD:CAD swing short which and this was stopped out on the day it printed its high...
As you'll remember in my previous post of 2 Weeks ago I gave details of 5 currency pairs each demonstrating early stages of set-ups I tend to follow before entering a trade.
As things stand I've not entered trades in any of them as yet. For one of them I missed the chance as the move began overnight therefore making the risk/reward ratio a little less favourable, one I forgot about, one didn't play out as expected, one still hasn't finished the set-up and one is very close to decision making time.
In all honesty there still isn't much out there that's worth trading based on my low-risk approach but as I've not posted any updates for a Week here's a quick one just to show I'm still plugging away in the background waiting for opportunities.
Last Week I mentioned a few trade possibilities and 2 of those played out well even though I didn't take them myself. The 3rd one was AUD:CAD for a swing short from the same 50% fib level in this chart although I did suggest it may take a while to play out.
Following my 3 Week break I feel I'm trading at quite a comfortable and relaxed pace continuing to hold the DAX and GBP:CADswing long positions.
DAX as with other indices seems to be going through a correction at present but its quite clear DAX remains one of the strongest Indices. As you know, my system shorted FTSE back in May on the basis a medium to long term top may be in place. Bearing this in mind it could turn out the DAX Monthly break-out candle is little more than a fake-out and I am concerned that the huge profits seen on that trade will turn to dust, but I'm quite determined to stick to the plan on this one unless I see a real break-down in the technicals.
GBP:CAD is currently trading in the middle of its long term trading range but has shown some potential for a possible move from here to the top of its trading range which may provide a short term swing long set-up.
The 4 Hourly chart shows the recent leg down to have found support at the 61.8% fib retrace from the last major swing low to the recent swing high. For a potential long entry this would likely become the area where stop loss positioning should be considered.
Having closed the previous EUR:AUD swing short for a quick profit the time has come to take another look whilst price continues to struggle against Daily resistance.
The MACD negative divergence has now confirmed itself and price breaks above the 1.4270 level appear to attract selling pressure. I was so close to entering short last night but at that time price was above 1.4270 and looking lively so the decision was made to wait until today. Price did drift lower overnight and my entry wasn't at the best possible levels but it turned out to be good enough.
Whilst I'm still hunting down my next swing trade, here's a quick look at the Hourly and 4 Hourly DOW charts as seen from my perspective.
I've zoomed right in on this Hourly chart to give a better picture of the triangle breakdown.