On Jan 9, we received a Ichimoku 5 time frame Buy Email alert on the Forex EURJPY. The email is shown below:
Since all the JPY currency pairs have been trending for a long time, we need to keep the risk low. Also, if you look at the 4h chart, it was consolidating so the risk definitely needs to low. Therefore, we setup for a 4h Pull back trade on the EURJPY. The entry was 114.559, initial stop of 113.949, and preserve mode value of 116.00. This would be a 61 pips max risk and a min. reward of 144 pips. This would give us a min. 2.3:1 reward/risk ratio. This is a low reward/risk ratio. If you were an aggressive trader you can take it but a conservative trader definitely would not. The chart is below:
The trade triggered and we entered preserve mode too. The current stop for the trade is 118.62.
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
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 can not 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.
