This month's ProAct Traders “Real Estate of the Month” (formerly the pay your mortgage trade) idea is found in the EURAUD pair.
08/13/19 1.6530 start target= 1.5633 for 897 Pips
We took the first trade on the break of the wedge pattern. This is a potentially a good trending opportunity (we are already in wave 3). We are anticipating a 4th wave at Target 2 (1.6010 area) and the overall target could be all the way to the S7 @ 1.5633. We will need a short pullback shortly to establish a new trend angle to the downside (dotted Line in Graphic).
We are looking for this initial move to do the pullback @ 1.6306 and then an abc pullback for the 4th wave At Target 2. Any other pullbacks should be treated as additional opportunities to add. There are 3 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? If you missed the first entry (we discussed in our Endeavor class on this) You will need to wait for your pullback on the break of the 1.6446 area. Take your first (or second if in already) 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 looking to add on every 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. Your first trade should not come off until 1.5998 ( if then) but remove any add on over the weekend and on any significant bounce.
The pair typically has pullbacks in the 90 pips range, so watch to scale out positions and then every pullback could add an additional 90 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 157 Pips per day which is HIGHER than its 90-day average of 108), so this might take about 2.5 -3 weeks with pullbacks!