This month's ProAct Traders “Real estate of the month” (formerly the pay your mortgage trade) idea is found in the GBPAUD pair.
11/06/18 1.8110 start target= 1.7461 for 649 Pips
We took the first trade on the pullback to finish a 4th wave a-b-c pattern. This is a good trending opportunity and the target at the bottom is 1.7461 which means an opportunity for 649 Pips. We also have a larger target at the Day chart bottom @ 1.7287 which could add an additional 174 pips to the opportunity.
We are looking for an initial move to the S6 support @ 1.7838. The bounce here should create a small pullback and the “pullback is my friend”. There are 2 large Wide-Open Space’s (WOS) here and a possible 3rd – 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 minor support @ 1.8050. 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. Currently the ATR (14 Day - Average True Range) of the currency is 162 Pips per day (which is slightly higher than its 90-day average of 144), so this might take about 2.5 weeks with pullbacks!