Ichimoku Indian Stock Trade of the Week 01-20-2014 : BANK of BARODA and VIJAYA BANK, SELL

On Jan. 20, 2014, we received an Ichimoku 3 multiple time frame sell email alerts on Bank of Baroda and Vijaya Bank for the Indian Stock Market. The email is shown below:
01_20_2014_3_I
The email alerts were for a break out of the Bank of Baroda stocks on the bearish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bearish side, it had a strong momentum supporting it.   There was an ideal opportunity to take a break out trade.    The entry for Bank of Baroda stock was at Rs 627.70, Initial stop of Rs 637.40 and a target of Rs 602.32 was set.  That gave us a risk of Rs. 7.70 per share. The Entry, Initial Stop and the Target was based on proprietary ichimoku 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.  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 target, giving us a profit of Rs. 22.38 Per Share. This trade gave a Risk to Reward Ratio of 1 : 2.91. Here is the chart setup:
01_20_2014_BoB 1
In this trade as well, as soon as the price broke on the bearish side, it had a strong momentum supporting it. The entry for Vijaya Bank stock was at Rs 38.94, Initial stop of Rs 39.26 and a target of Rs 37.82 was set. That gave us a risk of Re 0.42 per share. The Entry, Initial Stop and the Target was based on proprietary ichimoku 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 is at the preserve mode and the stop has been moved down and currently is at 38.62. This gives us a locked in profit of Re. 0.32 per share. If the price pulls back from this point, we are surely going to be able to keep the locked in profit. On the other hand, if the price moves down to our anticipated target we will be able to achieve a profit of Rs. 1.12, thus giving us a Risk to Reward ratio of 1 : 2.67. Here is the chart setup:
01_20_2014_VijayaBank 1
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
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.

About the Author Vinesh Midha