On May 13, 2015, we received an Ichimoku 4 multiple time frame buy email alert on PGH-ASX, PACT GROUP FPO for the Australian stock market. The email is shown below:]
For the trade of the week, we choose an “ugly” consolidation pattern. A lot of stocks in the Australian stock market are consolidating. Since we are dealing with a consolidation pattern, we are going to use a pull back strategy to keep our risk low.
We are going to use the 240m time frame to setup the pull back trade. The entry will 4.14, initial stop of 4.10, preserve mode of 4.25, and a target of 4.28. The target is the top of the consolidation pattern. The risk is 0.04 and the min. reward is 0.11 to preserve mode. To preserve mode, it is close to 3:1 reward/risk ratio. To the target, it will be over 3:1. Here is the chart:
The trade was entered and preserve mode has been reached. The current stop is 4.17. Since our entry was 4.14, it is a “free trade” i.e. stop is above our entry.
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 email@example.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 cannot 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.