This month's ProAct Traders “Pay Your Mortgage Trade” idea is found in the GBPCHF pair.
I see that we are just finishing a 4th corrective wave and anticipating the 5th wave to the downside. We already have a head and shoulder reversal pattern in place and there is divergence on the 60-min chart. The size of the range (1.2832- 1.2092) is 740 pips. There is also a square up below the lower target that could add an additional 92 pips to the total.
How to trade it? You will need to wait for your set-up to show up, for London & New York traders, that will mean waiting for the break of the slope support and a break of the 0.214 Fibo @ 1.2716. Take your first entry on the formation of a “break, hook and go” below the Slope support and use the respective risk reward ratio to start trading this currency pair. Wait for Rallies to add to this 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 150 pips range so every pullback could add an additional 150 pips to the trade with another position. Currently the ATR (Average True Range) of the currency is 130 Pips per day, so this might take about 1 1/2 - 2 weeks!
Our trading methodology is based on proprietary technical indicators. We pay attention to what the big banks are doing in the markets (the Big Boys) and specifically look for opportunities that have a high opportunity and low risk. We always identify our target before entering a trade, and we focus on the risk of the trade instead of the reward. We ...
