Forex Trade of the Week : Dec 20, 2013 5 time frame Ichimoku Buy GBPAUD Currency

On Dec 16, 2013, we received an Ichimoku 6 time frame buy email alert on GBPAUD currency for the Forex market from www.ichimokutrade.com.     Here is the email alert:

On the 2hr time frame, the instrument had broken a major resistance and then decided to consolidate.   Since we are in a consolidation pattern, we are going to setup a pull back trade.   Since this is a 5 time frame buy the probabilities of the pull back trade are higher than normally.

The entry is 1.8228, initial stop of 1.8204, and a preserve mode of 1.8318.    The min. reward is 90 pips and a max. risk of 23 pips.   This would give us a min. reward/risk of 3.9:1 i.e. 391% when we enter the trade.   Here is the chart setup.

 

About the Author Manesh Patel