On August 18, 2014, we received an Ichimoku 5 time frame buy email alert on a stock in the Australian ASX Stock market. The stock was LEI-ASX, Leighton FPO. Here is the email alert: We are approaching the last high of 22.65 after a minor pull back. As a result, we need to keep the risk low. Therefore, we are going to setup the trade on a 4h time frame. The entry will be 21.58, initial stop of 21.38, and a preserve mode of 22.65. This would give us a min. reward of 1.07 with a max risk of 0.20. This over a 5:1 reward/risk ratio i.e. 500%+. This opportunity can be traded with CFD, Stock, etc. Here is the chart setup with the current price action: Price reaching our preserve mode value so now we are going to tighten our stop and prevent going “round trip” i.e. giving back all our profits. The current stop is 22.14.
EDUCATIONAL USE: Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you cannot afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.