How to Set up a Trade with a 900 Pip Target

Hey everyone!

This is Nathan with an exciting trade opportunity for you today. It comes on the GBP/CAD and has a 900 pip potential gain!

So let’s take a quick look at the GBPCAD on a daily chart… Here’s my basic analysis on it:

gbpcad_june_25

After a strong downtrend, the GBP/CAD has been moving with a ton fo momentum to the upside. The GBP strength is matching perfectly with recent CAD weakness and we are seeing the evidence of that with the recent 1,100 pip move.

What I want you to notice is this: Each time the GBP/CAD breaks a level, it has moved nicely through the “open space” between levels and respected the next key area of resistance (and then broken it).

The reason this is important is because we are on the edge of breaking yet another key level in the midst of this raging bull. Not just a key level, but a key level that would represent a continuation move on the MONTHLY chart with potential for thousands of pips of continuation.

And why does that matter for us? Because if the GBP/CAD continues to cruise from one key zone to the next, we could be buyers on the break and target the next key level… Which is over 900 pips away!

Take a look at the monthly chart… See what I mean?

gbpcad_june_25_monthly_levels

We are not quite there, but the GBP/CAD appears to be set on breaking through this next level. And if it does, we are in position for a huge pay day.

When you look at it on this Monthly chart, you can see that the break isn’t just an ordinary break, but a surge toward a higher high in the midst of a 4,000 pip uptrend beginning in March of 2013.

In other words, this break is no joke and we should pay a whole lot of attention to it.

The trade is simple and straightforward… As soon as a daily bar closes higher than 1.9575 we are instant buyers with a take profit of 2.0550, some 975 pips away!

The stop loss should be protected by the most recent zone and would likely be in the 200 pip range. But with a trade of this size, there will always be an opportunity to add to the position and manage the position to maximize profit… The key is not missing the entry!

To make sure that you don’t miss that opportunity, you can grab our Special Offer on our Custom Tools Here which will also get you a free month in our live trading room.

Thanks for reading, have a great day!

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  • piphunter

    In principle I agree. We are in a nice uptrend, no questions. Looks a bit exhausted at the top, though. But as we know to succeed in FX we need to buy LOW and sell HIGH)). Maybe it is more feasible to wait for a pullback at 1.92-1.93 levels of past resistance future support and buy there? Otherwise, if we break above 1.9575 the stop loss on daily should be enormous, or othewise stop loss could be set just below the break but in this case it will not be technically justified and could be triggered easily if there is no follow through. Anyway, each trader can decide for himself.