Benefiting from the greed of “big boys” 1000 pips trade set ups ~ forex news trading forum
What I will share with you today is how to benefit from the greed of the “big boys” using the 1000 pips trade set-up. As I mentioned in my postings on the Mastercharts that the major resistance/support for GBPUSD and GBPJPY are encountered after every 1000 pips price movement. After every 1000 pips movement for these pairs, expect a pull back. A circle for GBPJPY is divided into two parts of 500 pips each, while that of the GBPUSD varies. In a generous trading environment, the GBPJPY could complete this circle within 2-3 weeks and between 4-8 weeks in most times. GBPUSD takes between 6-12 weeks to complete this circle as a result of its numerous pullbacks.
The “big boys” are greedy and they don’t let go until they get between 900-1000 pips even when there is no justification for such price movements. That is why you see 300 pips wicks on weekly candles. How do you benefit from their greed? This predictable circle of 1000 pips price movement gives a very useful signal that a medium/long term trader could utilise to trade this circle successful over and over again. You cannot predict his circles, but the weekly chart provides very useful and insightful signals. To trade these circles, this is what to do:
a) Wait for a weekly candle to print a new high or low
b) Draw a horizontal line or circle at the lowest or highest point i.e. the wick of the candle.
c) From the lowest or highest price on the weekly charts calculate 1000 pips and put a draw a box to identify the likely target areas.
d) If price has not moved far from these points (less than 100 pips) you can enter the trade if you are ready to wait for some few weeks.
e) If the price has moved far (300-400 pip) it is better to place a pending order at the point where the reversal is expected (900-1000).
f) Follow the ride and jump off if you make some sizeable pips.
Look at the weekly chart for GBPUSD and the 1000 pips movements indicated by the red and yellow boxes. On the GBPJPY chart the levels are shown by the price movement between two yellow line or two aqua lines. Based on this analysis the expected target for GBPUSD if the bearish run that was reversed at 1.57800 is completed is around 1.67800. The target for the GBPJPY is around 135.00.
I have mentioned it very times, success is only guaranteed only when a trade has “helicopter view” of the market. Remember, the important thing is to take only first class trades because it is your money that is on the line. If the opportunity is not right, forget it and look for better ones. There are always better opportunities in this market. The reason is simple - this market is driven by greed!
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