On February 24th, 2016, we received an Ichimoku 4 time frame Buy email alert on ITRK-LON, INTERTEK GROUP for the UK FTSE Stock Market. The email alert is shown below:
We liked the cloud breakout strategy on the 4hr chart and so the next step is to check the higher time frames to make sure they are not against the direction of the 4hr trade. The daily and weekly charts were also bullish, so we can now check our reward to risk ratio. Our entry would have been 2957 with a stop at 2758 and the target at 3104. This gave us a reward to risk ratio less than 1 to 1. Since we are rules based traders we did not take the trade as it would have violated our reward to risk ratio rule.
See chart below for setup….
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