At 2:07 pm EST, we received a 4 time frame Ichimoku Sell Email alert on the Currency GBPUSD for the Forex market. Here is the email alert:
The lowest time frame is the 60m so we will setup a pull back trade on the 60m time frame. The entry will be 1.6963, initial stop of 1.6969, and a preserve mode at 1.6937. This would give us a min. reward of 25 pips and a max risk of 7 pips. This is over 3:1 reward/ratio i.e. 300+. Here is the chart setup:
Before we take the trade, we are going to look at the higher time frames. This morning, we had two trading opportunities. One was trading within a consolidation pattern and we were going to trade it to the bottom support which was close to the entry. The other one bounced off the bottom of the consolidation pattern. We lost on the first one and winning on the second one. If you look at the weekly and the monthly time frame for the gbpusd, the preserve mode is a major support on the weekly (Tenkan Sen) and a major support on the monthly which is (SKB). Therefore, the probabilities are low on going lower than the preserve mode. For the aggressive traders, this is ok but for the conservative traders, this is not a potential trading opportunity due to the probabilities. Here is the weekly chart:
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
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