Ichimoku Currency Trade of the Week 2-8-13 : GBPCAD Forex

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  • Ichimoku Currency Trade of the Week 2-8-13 : GBPCAD Forex

On Feb 4, 2013, we received an Ichimoku 5 Time frame Sell on the Currency GBPCAD for the Forex market.  The email alert is shown below:

The GBPCAD is a big consolidation pattern.  As a result, we need to setup a Pull back trade on the 4hr timeframe.   All the other time frames look too busy.  The entry is 1.5756, initial stop of 1.5794, preserve mode value of 1.5663, and a target of 1.5663.   This would give a max risk of 38 and min. reward of 93.   This would give us a min. reward/risk of 2.5:1.   To the target, we would get us a 6:1 reward/risk ratio.    If you are an aggressive trader, you would take it but if you are a conservative trader, you would not take it since it is not exactly a 3:1 reward/risk ratio.   Here is the chart setup:

We got stopped out at 1.5663 which is below the preserve mode value.

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

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