On December 10, 2013, we received a Ichimoku 5 time fame sell email alert for Wheat futures from www.ichimokutrade.com. Here is the email alert:
Wheat futures was bearish and has been consolidating since 11/8. There is a high probability of it going either way from the consolidation pattern. As a result, we are going to setup the trade on the 4hr time frame to keep our risk low. Also, we are going to setup a breakout trade with a tight stop since it has been consolidating for a long time. The initial entry was 649 6/8 with an initial stop of 655 7/8. There is no preserve mode since we are going to enter preserve mode on entry to keep our risk low. Therefore, we will use the red line plus a buffer as a stop. Here is the chart setup:
Currently, our stop if 629 6/8. If the trade reverses, we will still make around 20 pts assuming no slippage. We are over 3:1 reward/risk already.
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