We talked about this on the webinar the other night that we had that went through the website tools. With the multiple time frame email alerts, we can see when everyone is thinking one sided. It doesn’t always mean that it is going to go the way everyone is thinking. In fact, majority of times it wont. As a result, a trader should be thinking if it doesn’t, at what point, will I look for a trade to go the opposite side. If it goes opposite, it will move fast too because everyone will be panicking to get out.
Here is an email we received this morning.
Notice, the email alert, there was nothing in the 120m,240m, and daily time frame. This indicates that there is some weakness on the higher time frames for it go bearish.
Due to the weakness, we are now going to monitor the 10m time frame to see if the resistance on that time frame holds. Here is the chart:
The red arrow indicates where the email alert was received. The cloud and the green line (Kijun Sen) are the major resistance for the 10m. The pivot low was going to be the support. Therefore, we had it “trapped” and had to just wait to see what it was going to do i.e. break the support or the resistance.
Notice, it broke the resistance. This is now showing signs of bullish so all you have to do is wait for a bullish setup. We will wait for price to balance around a 10m support. Once it does, we will enter a pull back trade on the 10m to go long with a very tight stop.
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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