This month's ProAct Traders “Real estate of the month” (formerly the pay your mortgage trade) idea is found in the EURAUD pair.
01/08/19 1.6000 start target= 1.5345 for 655 Pips
We are looking to take the first trade on the pullback to the top of the current box. This is a good range opportunity and the target at the bottom is 1.5345 which means an opportunity for 655 Pips.
We are looking for an initial move to the 0.500 Fibo support @ 1.5878. We are not expecting any big pullbacks until the Square up @ 1.5625, but any should be treated as additional opportunities to add. The bounce there should create a small pullback and the “pullback is my friend”. There are 5 large Wide-Open Space’s (WOS) here - Don’t Miss those BIG Opportunities! Any pullback offers increased opportunity to add positions. The area that got them in the range show an initial target @ 1.5573 once they exit the box. Use that as the first real target of the range with the rest icing on the cake.
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 Close and Reverse @ 1.6099. 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 1.5573 but remove add on over the weekend and on any significant bounce.
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 163 Pips per day (which is 40 pips higher than its 90-day average of 130), so this might take about 2.5 weeks with pullbacks!