Live Ichimoku Day Trading Stocks/Options: 7 Time Frame Sell Morgan Stanley Stock

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On May 9, 2014, we received an Ichimoku SP500 7 time frame Sell email alert on Morgan Stanley Stock from 1 hour before market close.     Here is the email alert


With this example, we wanted to “walk everyone” through the entire process of Day trading off the email alerts.   The trader can use ATM options to trade this instruments which will be the safest way instead of shorting the stock which has unlimited risk.    The email alert shows the 4h timeframe as a cloud breakout strategy so we will setup the trade on that time frame.    The higher time frames indicate that a possible major pull back can occur now since we have been consolidating at a major resistance and because the daily time frame is showing signs of breaking down.   As a result, we are going to setup a pull back trade within the consolidation pattern to see if it is ready to start it movement down for the major pull back.    If we lose in this trade, it will indicate that the instrument is going to continue to consolidate instead of break down.

Since we are trading an “ugly” chart pattern and also within a consolidation pattern, we will setup a pull back trade with an entry at 30.23, initial stop of 30.51, preserve mode of 29.01 and a target of 28.30.    This would give us a max risk of 0.23 and a min. reward  of 1.22 to the preserve mode.  The reward/risk to preserve mode would be 5:1 i.e. 530%.     Here is the chart setup;


If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to or email us at

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