On June 30, 2014, we received an Ichimoku 3 multiple time frame buy email alert on Maruti Suzuki India Limited for the Indian Stock Market. The email is shown below:
The email alert was for a break out of the stock on the bullish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bullish side, it had a strong momentum supporting it. There was an ideal opportunity to take a break out trade. The entry was at Rs 2483.64, Initial stop of Rs 2432.75 and a preserve mode of Rs 2633.13 was set. That gave us a risk of Rs 50.89 per share. The Entry, Initial Stop and the Preserve Mode were based on proprietary chimoku 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 we traded out half the lot of our traded quantity. The Stop Loss has been adjusted to the new value and we are waiting for the price to hit the final target. If the price does not go to our target and goes back, we will still be making a good ratio of profit, as shown in the chart. If the price hits our anticipated target, we will be trading out the other half of the quantity. The half lot of the quantity which has been exited, gave us a profit of Rs 149.49 Per Share. This trade gave a Risk to Reward Ratio of 1 : 294. Here is the chart setup:
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