$ASX Australia Stock Market Trade of the Week $CHC-ASX. On March 26, we received a 5 Time frame Ichimoku Buy Email alert for $CHC-ASX, Charter HG Forus. Here is the email alert received.
Our trading plan only allows us to trade Strategy #4. We wanted to use a lower time frame due to the $ASX making new high’s. Below is the 60m chart provided by eSignal March 25.
Below is the result:
We got to preserve mode and finally exited the trade at 5.58.
The chart shows a bullish setup with black square IMTF™ support in the setup zone. The breakout dots (blue dots above price) are at major pivot so it would not be a good breakout level. The entry would have to be higher. Since the ASX is making new high’s, we want to take only low risk trades so we are going to do a pull back trade.
In the setup zone, we have set of black squares at 5.46. Notice, it is not at the current bar anymore. We are now dealing with a past support compared to a current one. The next set of back square is at 5.42. There were more supports there then at 5.46. Since we don’t have a current support anymore, we are going to place an entry at 5.42, initial stop of 5.39, and preserve mode of 5.56. This gives us a risk of 0.03 and a reward of 0.14. This is over 4:1 reward/risk ratio.
On March 28, we entered Preserve mode. In preserve mode, you take either 50% or 75% of your positions off and tighten your stop. The trade was exited at a price of 1518.75.
Both instruments indicate the Chinese stock market is bullish. However, it is not trending yet. both instruments are at the major resistance but haven’t broken it yet.
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