This month's ProAct Traders “Real Estate of the Month” (formerly the pay your mortgage trade) idea is found in the GBPAUD pair.
04/03/18 1.8318 start
We are waiting for the turn on the top of the flag and start a 3-4-5 wave pattern in a trend to the 1.7710 area. CAUTION: There are always 2 or more alternative counts in Elliott Wave.
We expect wave 3 to continue to the 1.7950 area which is roughly 368 pips. After a 4th wave pullback (tradeable for advanced traders) to the 1.8165 area, our next target is the bottom support area at 1.7710. This move could yield 455 pips.
There are 4 large Wide-Open Space’s (WOS) here – Don’t Miss those BIG Opportunities! Any pullback offers increased opportunity to add positions. Just trading 1 position in each WOS would yields 823 Pips not counting pullbacks.
How to trade it? You will need to wait for your set-up to show up, for London & New York traders top of the flag and add at the break of the bottom. Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
The pair typically has pullbacks in the 90-120 pips range, so every pullback could add an additional 120 pips to the trade with another position. Manage that Pullback by removing all but the FIRST TRADE (tough if your Broker still honors FIFO) . Currently the ATR (14 Day - Average True Range) of the currency is 158 Pips per day (which is higher than its 180 day average of 147), so this might take about 2-3 weeks with pullbacks!