Ichimoku Forex Trade Setup: EURSGD Currency Short, 4 time frame Sell

Aug 06, 2014 08:36:08 AM EST , we received an Ichimoku Forex Multiple Time Frame Sell email alert on the EURSGD currency.    Here is the email alert:

aug6_blog_currency_email

 

The email alert shows the 60m and the 240m trading time frames are setup with Ichimoku.    In examining the higher time frames, they are indicating bullish.   Here is the monthly chart of the instrument.   It shows price is moving down along the bottom of the cloud and trying to get to the monthly Kijun Sen at 1.6421.

aug6_blog_currency_chart2

 

In examining the lower time frames, price is consolidating.   We want to keep our risk low since we are dealing with the Singapore currency.   As a result, we are going to setup for a 30m breakout trade to keep our risk very low.    The entry will be 1.6664, initial stop of 1.6687, and a preserve mode of 1.8641.    This would give us a max risk of 22 pips with a min. reward of 23 pips.   For breakouts, we look for a min. 1:1 reward/risk so when we enter the trade, it will go to a 3:1 reward/risk since the stop will move drastically on the breakout.

aug6_blog_currency_chart

 

The goal of this trade is to create a “budget” and keep the risk low due to the consolidation pattern.    We want to trade down to the monthly support.   You will not be able to do that with the 30m time frame.   Once we get to preserve mode, we are going to take our profits and go a higher time frame and trade off that time frame.   The profits will buy down the risk.    Also, if the breakout is “fake” then the risk will be low.   If it isn’t “fake”, we will get to our preserve mode fast.

 

 

 

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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