It is very interesting how people are making comments throughout the web that Ichimoku does not work on lower time frames. This statement is COMPLETELY FALSE. If they really understand Ichimoku, they would know that there are NO limitations with Ichimoku. It works on any instrument and any time frame. Just like all other systems, you have to examine the higher time frames to increase your probability of success. Also, the entry can only be a pull back entry to keep risk.
Most scalping systems have an inverted reward/risk ratio where they are risking $5 to make $1. It takes one loss to wipe out a lot of profits. Our scalping trades requires a min. of a 3:1 reward/risk ratio. Without the Money Management of 3:1 risk/ratio, you can not survive in trading!
Here is a E-Mini SP500 trade from Friday, Jan 24, 2014. The time frame of the trade was the 512 tick. It was timed with three other time frames to increase our probability of success and also increase our reward/risk. The entry was 1803.75, initial risk of 1805.50, and target of 1800.25. The target of 1800.25 was basically the Daily Kijun Sen value. This gives us a max risk of 3 ticks to make a max profit of 3 1/2 points. This is a reward/risk of 4:1 i.e. 466%. Here is the chart setup:
Price got to our target and then bounced off it temporarily.
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.
