On June 24, 2013, we received a 6 time frame Sell Ichimoku Email alert on the stock IDA, Idacorp Inc. The email is shown below.
In looking at the weekly time frame, IDA had bounced off the major support of 46.19 which was the Ichimoku Kijun Sen. Here is the weekly chart:
The email alert showed a selling opportunity on the 240m. In examining the charts, the pull back trade at the Ichimoku Kijun Sen value of 47.56 would be in the middle of the consolidation pattern. Also, if price pulled back to that level then it would go back above the consolidation support level which would not be good. Here is the 240m chart:
Due to all these reasons, we did NOT enter the trade. It is better to “walk away” from these type of trades instead of putting the trade on. Why? Well, there are a number of reasons. First, it is not a high probability trade. It is 50/50. You can not win with these types of statistics. Second, taking these types of trades can setup a bad habit which we definitely don’t want to do. Lastly, this trade can be emotional. Since you are trading within a consolidation pattern, the trade can go positive and then negative and positive over and over causing an “emotional roller coaster”. In order to be a successful trader, we want to setup our environment so we succeed and not fail. Taking this trade, would setup us to fail.
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