The currency GBPNZD got to our preserve mode value for the Forex market. At that point, a couple of things can happen because you go into “defense” mode to protect your profits.
If you entered with multiple contracts, you take off 50/75% of your contracts at this point. The rest of them, you can continue to use the Kijun Sen with a buffer or you can tighten your stop by using the Tenkan Sen with a buffer as a stop. For the remaining contracts, you exited with some profits.
If you had one contract, you basically switch from the Kijun sen to the Tenkan Sen with a buffer for a stop. You exited with some profit in the end.
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
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.