Future Trade of the Week : Jan 10, 2014 / 5 time frame Ichimoku Buy Oat Futures

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:
Weekly_future_jan10_2014_email
 
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:
Weekly_future_jan10_2014_chart
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
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About the Author Manesh Patel