Taking a look at the 7x and 6x email alerts for Currencies for the week of April 22

Typically a Heatmap 7 time and 6 time frame email alert is high probability for a trend to begin. But it can also be a high probability to reverse. I’m using a 3 Step Trading Plan. 1st I find an Email Alert. 2nd find the major iMTF (ichimoku Multi Time Frame) support/resistance level. 3rd Money Management. Find my stop by using ATR (Average True Range) 26(BARS)/2. Then take that value and deduct it from the iMTF. Trail stop off the kijen-sen (26 bar line). Look for 3:1  reward/risk for pull backs and 1:1 reward risk for break outs. Lets take a look at this past weeks email alert.

Watching how price reacts to these iMTF’s,  you can tell you a lot about he chart. You can see how strong the sentiment of the chart is. Here are a few rules to consider with iMTF’s and its relation to price.

1. If price does not pull back the iMTF,  then we have strong sentiment for a break out.

2. If price pulls back to the iMTF and holds, we now have a pull back with a high probability to the pivot,

3. If price does pull back to the iMTF and breaks it, then we have weakness, which could lead to a consolidation or a reversal.

Rule one is really strong sentiment. Rule two is strong and probabilities can be increased with optimization rules. And rule three is weakness, which can also be looked at as counter trend strength.

AUDCHF 6X ALERT AUDCHF 6X CHART

 

AUDCHF did not pull back to the MTF so my rules say take a break out. But my rules also say I need a 1:1 reward risk and its not there, so I walk away from this trade.

 

EURAUD 6X ALERT EURAUD 6X CHART

Of course the EUR and CHF will be some what the same, so the same case here. No trade set up.

 

EURAUD 6x ALERTEURAUD 7x ALERT

EURAUD 6x7x CHART

Here EURAUD has a 6 and 7 time email alert. There is a MTF on 4hr all the way down to the 10m. It did not pull back to the MTF so the sentiment is strong but due to a pivot on the Daily the break out does not give a good reward risk,

GBPCAD 6x ALERT GBPCAD 6x CHART

 

GBPCAD has 6 time email alert with a MTF on the 4hr to the 10m. Not a fan of the setup. It already broke out of the cloud and did a pull back and never retested the pivot low. This is showing me weakness and I’m going to stay out of this trade.

USDCAD 6X ALERT USDCAD 6X CHART

USDCAD has a 4.2.1.30 MTF. Playing the pull back because it fits my rules.

Take these multi time email alerts and look for Ichimoku Multi Time Frame (iMTF) support/resistance  to find low risk pull backs. You can see how important it is to identify the iMTF. So when looking at the email alerts,  the first thing I want to look for is the iMTF. If there is no iMTF then I don’t take the trade. If there is an iMTF,  then I place a trade at that iMTF. If price does not pull back to the iMTF then this means the sentiment is strong and then I place a break out order. Use the chart to give you clues to what price wants to do. Also don’t forget about reversals. If price breaks the iMTF then look for it to come back and retest it for the reversal. As you can see there are great opportunities to find a trade. Ichimoku is designed to save you time, so is this website. Take advantage of the multi email alerts, combined with real time scanner iMTF’s to help you find high probability trades.

If you have any questions about how to use the multi time email alerts or set up real time scanner, email me at mcolquitt@ichimokutrade.com. I will set up a 30m help session.

 

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

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 can not 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.

 

About the Author Michael Colquitt