This month's ProAct Traders “Pay Your Mortgage Trade” idea is found in the AUDNZD pair.
I see that we are in a nice large range with a double top already in place. The size of the range is 517 pips of which 89 pips has already take place. A break here @ 1.0653 would yield 428 pips if the pair simply went straight to the bottom, which of course it won’t.
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 formation of a “break, hook and go” of the Slope support and use the respective risk reward ratio to start trading this currency pair. Wait for Rallies to add to this position. Remember the “pullback is your friend” in route so use those to add to the position. The pair typically has pullbacks in the 80 pips range so every pullback could add an additional 80 pips to the trade with another position. Currently the ATR (Average True Range) of the currency is 71-85 Pips per day, so this might take about 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 have (and follow) rules, and we press our winning trades without exception.
Remember that we recommend that you always trade with stops. And if you don't trust yourself or think you'll get cold feet in a long trade like this, then place the trade and walk away. ...
