Forex Trade of the Week : Jan 3, 2014 Seven time frame Ichimoku Buy USDCHF ?

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  • Forex Trade of the Week : Jan 3, 2014 Seven time frame Ichimoku Buy USDCHF ?

On Dec 30, 2013, we received an Ichimoku Forex 7 time frame buy email alert on USDCHF Currency from www.ichimokutrade.com.     Here is the email alert:
Weekly_currency_jan3_2014_email
 
All the scalpers, day traders, scalpers, and long term traders are thinking this currency is going to go down since there was an Ichimoku setup on all 7 time frames.   The red arrow shows when we got this email alert.    In examining the 4h time frame, we noticed on 12/27/13 at 9am EST there was a possible “stop run”.     It broke the support and then closed back above the support.   This is a sign that a possible bullish reversal could take place.    If a reversal took place, price could move up drastically since all the traders are thinking short and they would be a short cover rally.    As a result,  we put an alert at 0.8885.    Once we get a close above that resistance, we will setup a pull back trade on that new support (0.8885).
 
The chart setup is below.   The entry would be 0.8885, initial stop of 0.8855, and a preserve mode of 0.9009.    This would give us a max risk of 35 pips and a min. reward of 124 pips.   This would give us a min. reward/risk of 3.5:1 i.e. 354%.     Here is the chart setup:
Weekly_currency_jan3_2014_chart
The trade reversed and triggered our entry.   Currently, we are in preserve mode where we are “protecting” our profits.     The current stop is .8996.    Since our current stop is above our entry, this is a “Free trade”.    There is no more risk in the trade at all.    If we get stopped out, we will make 111 pips.   If the trend continues, we will look in more and more profits as it keeps on going up.    This is how you setup a “residual income”.
A LOT OF PEOPLE ASK US WHY WE DON’T TELL PEOPLE THE EXACT ENTRY.   THIS TRADE OF THE WEEK IS A PERFECT EXAMPLE WHY WE DON’T.    IT IS HARD TO PROGRAM EVERY POSSIBLE SCENARIO.    A COMPUTER WILL THINK THIS IS A PURE BEARISH TRADE SINCE ALL THE TIME FRAMES ARE SETUP BEARISH.   HOWEVER, A HUMAN MIND WOULD RECOGNIZE A PROBLEM GOING BEARISH.  ALSO, THEY WOULD RECOGNIZE THEY WOULD GET A BETTER REWARD/RISK TAKING A BULLISH TRADE AFTER THE “STOP RUN”.    THIS IS WHY OUR SIGNALS TELL YOU WHEN AN OPPORTUNITY EXISTS, NOT THE EXACT ENTRY.   IT ALLOWS THE TRADER TO LOOK AT ONLY POTENTIAL OPPORTUNITIES AND THEY USE THEIR MIND AND THEIR TRADING PLAN TO DETERMINE IF A TRADE REALLY EXISTS.   THIS IS HOW YOU GET A GOOD REWARD/RISK RATIO AND ALSO INCREASE YOUR PROBABILITY OF SUCCESS.
 
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
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