$Nifty / $Sensex Indian stock market trade of the week $TATACOMM. The trade of the week is $TATACOMM Tata Communication which had an Ichimoku 5 time frame buy email alert on March 10. Here is the email alert:
The highest time frame that had a strategy was the 240m. Therefore, we will first look for a setup on the 240m. Here is the 240m chart provided by TradingView:
The Blue arrow shows when the email alert was received. First, we are looking to trade only a timeframe that has a setup i.e. shaded area. Green means it is a bullish setup. Red means it is a bearish setup. Here, we had a bullish setup area which met our requirements. Second, we are looking for black crosses which means we can place a pull back trade. If not, we can only place a breakout trade at the blue dots above price in the green shaded area. We had black cross so our criteria was met.
If you look when at the arrow, you will notice that price already got to the black crosses and even penetrated it once. This shows there is a lot of volatility around the support which is not good. We have a miniature consolidation pattern around the support. As a result, we are going to look for a “clean signal” on the lower time frame.
Here is the 60m time frame.
The blue arrow shows when the email alert was received. At that point, you can clearly see the consolidation pattern with volatility spikes. We follow our rules and look for a green shaded area which matches the 240m. Later on in the day, we got a bearish setup (red) which failed and then got the green shaded area. Once the green shaded area appeared, we setup for a bullish trade.
In the green shaded area, we setup for a bullish trade at the green line which had the purple dots, the stop was the green dots below, preserve mode at the last pivot high, and a target which was the major high seen on 240m. The reward/risk was 3:1 so that meet our requirement.
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.