On Sept 5, 2014, we received an Ichimoku 3 time frame buy email alert on the UK FTSE Stock, ITRK-LON, Intertek Group. Here is the email alert: (reverse psychology)
Analyzing the higher time frame shows that the trend is bearish and the upward movement is a major pull back. The daily is showing showing signs where the pull back is possible over. If it is, the bullish opportunities with this email will fail. There is a major resistance 2827 which it can’t seem to break. As a result, we are going to setup a BEARISH trade. The entry will be 2809, initial stop of 2828, and a target of 2718. This would give us a max risk of 19 and a reward of 91. This will be a over a 4:1 reward/risk ratio. Here is the chart setup:
Remember, the email alerts showing you opportunities where the instrument is getting to “border line”. We then have to determine which way to trade it based on the higher time frames. In this case, we went opposite to the 3 time frame buy.
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 firstname.lastname@example.org
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