On October 27th, 2015, we received an Ichimoku 3 time frame Buy email alert on SHP-LON, SHIRE for the UK FTSE Stock Market. The email alert is shown below:
Shire has been going down since August of this year. The daily and weekly charts showed signs of a reversal. The 4hr was breaking out of the cloud for the first time in several months. So we looked for a trade setup on that time frame. We setup for a pullback trade to the 4496 level and also a breakout trade at the 4734. The pullback didn’t occur but the breakout did. We entered at 4724, with a stop at 4441 and our preserve mode was at 5022. Reward to risk at entry was 1 to 1, so we could take the trade.
We received the alert at 4:58 am EST as shown in the email alert above, On the chart below the alert is shown as a vertical line. You may wonder how we were able to enter the trade when the alert was on the same bar. Well you have to understand that the chart below is a 4hr chart, so that bar starts at 4am and ends at 8am. We received the alert about 2 hours before the big move on that bar, so there was plenty of time to execute the trade.
See chart below for setup….
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