This month's ProAct Traders “Real estate of the month” (formerly the pay your mortgage trade) idea is found in the EURJPY pair.
06/04/18 127.95 start
We are waiting to finish the pullback and continue a 3rd wave to the 119.96 area. This is most likely the end of the 3rd wave and then we will see a 4th wave to the previous support now resistance @ 124.63. We will look for the 5th wave there IF we get the pullback. CAUTION: There are always 2 or more alternative counts in Elliott Wave.
Wave 3 will then be 1300 pips so the 5th wave IF ALL HAPPEN according to plan will end at the Day chart bottom 144.77 area. The alternate count (Orange color) is that we are in a 4th wave now and waiting for the 5th wave. We are looking for an initial move to the support @ 124.63 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. Just trading 1 position in each WOS would yields 1,204 pips if we only do the short count not counting pullbacks.
How to trade it? You will need to wait for your set-up to show up, for London & New York traders OUT OF THE TRIANGLE. 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 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 135 Pips per day (which is higher than its 180-day average of 101), so this might take about 3 weeks with pullbacks!