On January 16, 2016, we received an Ichimoku 4 multiple time frame Sell email alert on IDBI BANK LIMITED, for the Indian Stock Market. The email is shown below:
The email alert was for a break out of the stock on the bearish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bearish side, it had a strong momentum supporting it. There was an ideal opportunity to take a break out trade. The entry was at Rs 81.68, Initial stop of Rs 87.50 and a preserve mode of Rs 62.06 was set. That gave us a risk of Rs 5.82 per share. The Entry, Initial Stop and the Preserve Mode were based on proprietary ichimoku strategy. As soon as the price started to move in the direction of the trade, a trailing stop method was applied, again based on proprietary ichimoku strategy. The price hit the anticipated preserve mode and the trade exited, giving us a profit of Rs 19.62 per share. This trade gave a Risk to Reward Ratio of 1: 3.38. Here is the chart setup:
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