On Nov 30, 2015 at 10pm EST, we received a Ichimoku 5 multiple time frame email alert on Crude Oil. Here is the email alert:
We are going to setup a pull back trade on the 60m trade in order to keep risk low. If you look at the eSignal 60m chart below, you can see some bars that have “spikes” on them. As a result, we want to keep our risk as low as possible just in case we get any “slippage”.
Below the chart that shows the entry at the multiple time frame resistance at 41.70. The entry is 41.70, initial risk of 41.85, preserve mode of 41.24. and a target of 40.39. The max. risk is 0.15 and a min. reward of 0.46. This is 3:1 reward/risk which meets our money management criteria. If we get to our target, the reward/risk will be a lot higher!
Below is the chart on when we got to our preserve mode. Our goal in preserve mode based on our trading plan is to start protecting our profits by tightening the stop and maybe take some contracts off. The stop now will be the red line plus a buffer.
Below is the chart when we got stopped out for a profit at 41.40. Unfortunately, price went through a “spike” which stopped us out for a profit and then closed back below the previous bar close. Basically, a “shakeout” took place.
Below is the chart that shows what happened after we exited the trade. If we had not gotten “shaken” out of the trade, we would have gotten to our target.
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