Ichimoku Stock Trade of the Week Aug 15, 2014 : VRSN 7 time frame buy email Nasdaq

Aug 11, 2014 02:56:08 PM EST , we received a Ichimoku Nasdaq 7 time frame buy email alert on VRSN, Verisign Inc.    Here is the email alert:

weekly_stock_8_15_14_email

In analyzing all the US Indexes, the Nasdaq was the strongest,  You can watch the Ichimoku Global Market Video to see the analysis of the US index.  (www.ichimokutrade.com/c/videos/categories/bi-weekly-global-stocks-videos/).    Since price was holding the weekly minor support on the Nasdaq and looked like it would have a high probability of retesting the pivot high, we wanted to look for a “Swing trade” on a stock in the Nasdaq.   “Swing Trading” for us is a trading you hold over night and it can last up to 1-2 weeks.    Since we want to keep risk low and it was a “swing trade”, we are going to trade the option “greeks”.

This this theory in mind, we found this 7 time frame nasdaq buy email alert.   Therefore, we setup a trade on the 120m time frame using options.    The entry would be 54.83, initial stop of 54.68, and a target of 56.30.   This would give us a min. risk of 15 cents and a reward of 1.46.    By trading the “Delta Greeks”, it would give us over a 3:1 reward/risk ratio since we are going to use an At-the-Money option one month out.    Here is the chart:

weekly_stock_8_15_14_chart

 

During the time of the entry alert, we examined the Option “Greeks” and entered the trade.    Once the target price alert was reached, we exited the options.

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

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About the Author Manesh Patel