Today’s Box trade idea will be triggered if the $EURUSD retraces into a so far un-retested Supply and Demand zone. If it does and is rejected back above, a long trade will open with the close below the box and a take profit based on the average daily range. No retest or no long rejection and no trade will be triggered.
Back after a short break with a sell idea on the $AUDUSD. If price gets rejected by the previous support that may now be resistance, then it may well move down an try and close the gap left over the weekend. The target has been set at the bottom of this gap. This trade also plays into a longer term $AUDUSD trend line short that you can read about here
This week’s Box trade on the $USDCAD has closed out a winner. The divergence we saw between price making a higher high in the Box, but the Wallaby stochastic failing to follow through, opened a short trade as price closed below the Box. The stop loss level of the Box remained in tact and price movement went on to reflect the sentiment of that original divergence signal. The end result was a nice 36 pips of profit.
Today’s Box trade idea is a short if divergence is seen as price tries to retest this previous high. A close below the Box, with divergence in the Box, will trigger that trade.
Having Internet access problems this week, so hopfully this post will make it!
Continuing the divergence theme, we are looking for a bounce out of this support area on the $AUDJPY. If price makes a lower low in the Box, but the multi time frame stochastic indicator makes a higher low (ie we see divergence) then on a valid exit from the Box, a long trade will be taken. Profit Lock is set to 10 pips once 40 have been made. No divergence – no trade!
A very short video showing the new (optional) Divergence Filter, allowing you to specify that Box trades are only taken if divergence is seen on multiple time frames as price leave the Box!