On Jan 6, 2014, we received an Ichimoku 5 time frame buy email alert on Oat futures from www.ichimokutrade.com. Here is the email alert:
The blue arrow on the chart shows when the email was received. The highest time frame that has a cloud breakout is the 4hr time frame so we are setting up the trade on this time frame. The instrument has been consolidating for a long time. Therefore, we are going to setup a breakout trade to avoid getting into a lot of losses within the consolidation pattern. Also, price tried once to exit the cloud bearish so we don’t want to setup a pull back trade. The entry was 359 1/8, initial stop of 348 3/8 and a preserve mode of 387 5/8. This is a max risk of 10 6/8 and min. reward of 28 4/8 on placing the trade. On entry, the reward/risk would go to 3:1 i.e. 300%+. Here is the chart setup:
The trade entered preserve mode and later exited at 385 4/8.
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.
