Stock Trade of the Week : March 5, 2014 -> 7 time frame Ichimoku Buy VRTX, Vertex Pharmaceuticals

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  • Stock Trade of the Week : March 5, 2014 -> 7 time frame Ichimoku Buy VRTX, Vertex Pharmaceuticals

On March 5, 2014, we received an Ichimoku 7 time frame Buy email alert on VRTX, Vertex Pharmaceuticals  for the US Stock market from     Here is the email alert:
If you look at all the US markets, the NASDAQ has been leading the bullish movement.   It is stronger than the SP500 and the DOW.   Therefore, we have been looking for bullish opportunities in NASDAQ and short opportunities in DOW and SP500.     The stock above was for the Nasdaq100.      The opportunity was a 7 time frame buy.   However, most of the time frames were not cloud breakout strategies.    Instead, they were a Number 2 strategy.   Typically a #2 means,  you are trading the major pull back which indicates limited profit.
Here are the 240m and the Daily charts:
Notice on the daily and the 240m time frame, price had two opportunities to continue the trend by breaking the major resistance.    It had the cloud below as a major support.   Instead, it bounced off it and was allowing price to get closer and closer to the cloud.   If price enter the cloud, the probability of price continuing the trend would become low.
Due to the examination of the daily and the 240m, it was determined the probabilities were low for a bullish breakout.    Therefore, we were not going to take any bullish trade at all.   We will wait for one of two things to occur.   If price breaks the resistance then the trend will continue and we will then look for bullish trade setup on the lower time frame.   For aggressive traders, if price breaks below the cloud on the 240m, we will look for a bearish trade.     Since we are in a consolidation pattern, the trade on the 240m would have to be a pull back.
Since price is now below the cloud on the 240m, we are looking for a pull back to the green line for a bearish trade.

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Written by mpatel Edit