Ichimoku UK FTSE Stock Trade for the Week ending April 15th, 2016: ASHM-LON, ASHMORE GRP

On April 8th, 2016, we received an Ichimoku 4 time frame Buy email alert on ASHM-LON, ASHMORE GRP for the UK FTSE Stock Market. The email alert is shown below:

41715ASHM

We had a multi-time frame support around 283, on pretty much every time frame that we look at.  We had an opportunity to take a breakout or pullback.  Problem with breakout was we did not have a 1 to 1 reward to risk, which means we can’t take the breakout.  So we looked at the pullback and we had a reward to risk greater than 3 to 1, which means we can take the trade.

Our entry was 283 with a stop at 281 and the preserve mode at 292.  The 292 level can be used as a target also, in which case you would be out at that level with a 4.5 to 1 initial reward to risk ratio.  However if you see the potential for a breakout from that level, you can set the level as a preserve mode, meaning that you tighten up your stop to protect profits.  In this case if we used it as a preserve mode we would have taken it up to 307, giving us a reward to risk of  12 to 1.

See chart below for setup….

41716ASHM

 

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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 cannot 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 Maneshkumar Patel