Future Trade of the Week : April 4, 2014 -> 4 time frame Ichimoku Buy US Dollar Index

On April 2, 2014, we received an Ichimoku 4 time frame Buy email alert on DX, US Dollar Index for the Futures market from www.ichimokutrade.com.     Here is the email alert:
weekly_future_4_4_14_email
In the email above, two futures products where shown.   We selected to put the trade on the Dollar Futures instead of Gold futures since DX was in the 2h and 4h time frame whereas Gold wasn’t.   Gold was more a day trading opportunity whereas Dollar Index Futures is a day trading and a swing trading opportunity.
Dollar Futures has been consolidating for awhile.   We are going to keep our risk low so we are going to setup for a pull back trade.    Also, we want the ability to maximize on reward with a low risk so we are going to setup on a 2h time frame instead of a 60m.     The entry is 80.276, initial stop of 80.221, and a preserve mode of 80.574.   This would give us a min. reward of 0.298 and a max risk of 0.055.   This would give us a min. reward/risk of 5:1 i.e 500%.    The chart setup is show below.
weekly_future_4_4_14_chart
The trade triggered and within the same 2h bar, it entered preserve mode too.    The exit price was 80.605.    We will continue to look for bullish trades for the Dollar futures since the 2h bullish trade was successful.
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 Manesh Patel