Forex Trade of the Week Aug 15, 2014: AUDCAD Currency 7 Time frame Buy Email Alert

Aug 14, 2014 07:16:08 PM EST , we received a Ichimoku Forex 7 Time frame Buy email alert on the currency AUDCAD.  Everyone is thinking bullish for this currency!!!  Here is the email alert:

weekly_currency_8_15_14_email

On examining the daily time frame below, we have a bullish cloud breakout strategy where price was having a hard time penetrating a minor resistance level i.e. red Tenkan Sen.    Here is the chart:

weekly_currency_8_15_14_chart2

 

The daily red resistance level was matching the yellow line on the 120m.   In fact, price tried once to break it but failed.   As a result, this looked bullish on the outside but it was showing signs of going bearish since it was a multiple time frame match resistance and has not succeed breaking it.  Therefore, we are going setup for a bearish trade instead to try to get everyone “caught” going one sided and then panicking to get out!.

The entry is 1.0168, initial stop of 1.0175, and a preserve mode of 1.0124.   This would give us a max risk of 6 pips and a min. reward of 124.    This would be a great reward/risk ratio that would occur if it triggers.   Not only will it be a good reward/risk ratio but if it occurs, it should get to the preserve mode value very fast since “everyone” is thinking bullish.   Once it starts to reverse, everyone that was bullish would “panic” and try to sell to get out!

weekly_currency_8_15_14_chart

 

Unfortunately, the entry was missed by a couple of points.  However, it did get to our preserve mode that we had outlined.   We will continue to look for bearish trades on the lower time frames as long as we stay below the 1.0168 resistance level.

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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About the Author Manesh Patel