Future Trade of the Week : Dec 20, 2013 7 time frame Ichimoku Buy Soybean Meal

On Dec 17, 2013, we received an Ichimoku 7 time frame buy email alert on Soybean Meal futures from www.ichimokutrade.com.     Here is the email alert:

When the email alert was received, the instrument had just broken out of a consolidation pattern.    Since we are not sure if it is a “fake” breakout or real, we are going to setup a pull back trade on the 4hr time frame.   If it continues to go higher, we have no issues missing the trade but we don’t want to get caught entering a trade with high risk.  The entry was 437.60, initial stop of 434.50, and a preserve mode of 449.40.    The min. reward is 11.8 and a max. risk of 3.1.  This would give us a min. reward/risk of 3.8:1 i.e. 380%.   Here is the chart setup.

 

Currently, we are in the trade and the stop is 439.10.   This is above your entry so it is a “free trade”.

 

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

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About the Author Manesh Patel