Ichimoku Indian Stock Trade of the Week 05-19-2014 : M M T C LIMITED, BUY

On May. 16, 2014, we received an Ichimoku 3 multiple time frame buy email alert on M M T C Limited for the Indian Stock Market. The email is shown below:

05_16_2014_3_I

The email alert was for a break out of the stock on the bullish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bullish side, it had a strong momentum supporting it.    There was an ideal opportunity to take a break out trade.    The Entry was at Rs 64.21, Initial Stop of Rs 58.84 and a Preserve Mode of Rs 101.02 was set.  That gave us a  risk of Rs. 5.37 per share. The Entry, Initial Stop and the Target were 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 did not reach the anticipated preserve mode and started to pullback falling short of the preserve mode. However, as a trailing stop method was being applied after the entry, the trade exited on a pullback at the price of Rs 94.31, thus giving us a profit of Rs. 30.10 Per Share. This trade gave a Risk to Reward Ratio of 1 : 5.61. Here is the chart setup:

05_16_2014_MMTC 1If 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