This month's ProAct Traders “Real estate of the month” (formerly the pay your mortgage trade) idea is found in the GBPJPY pair.
08/06/18 144.06 start
We are looking to take the first trade on the break of the falling wedge or on a bounce at the Day chart bottom @ 143.61. This is a big box (range) and the target at the top is 149.00 which means an opportunity for 494-530 Pips.
are looking for an initial move to the square up @ 145.00 and expect a short stall there. The bounce will be a pullback and the “pullback is my friend”. and then Day bottom @ 114.81. There are 4 large Wide-Open Space’s (WOS) here – Don’t Miss those BIG Opportunities! Any pullback offers increased opportunity to add positions.
How to trade it? You will need to wait for your set-up to show up, for London & New York traders on the break of the falling wedge. 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 upside and any pullback 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 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. Currently the ATR (14 Day - Average True Range) of the currency is 103 Pips per day (which is lower than its 180-day average of 134), so this might take about 3 weeks with pullbacks!