On Sept 5, 2014, we received an Ichimoku 3 time frame buy email alert on the UK FTSE Stock, ITRK-LON, Intertek Group. Here is the email alert: (reverse psychology)
Analyzing the higher time frame shows that the trend is bearish and the upward movement is a major pull back. The daily is showing showing signs where the pull back is possible over. If it is, the bullish opportunities with this email will fail. There is a major resistance 2827 which it can’t seem to break. As a result, we are going to setup a BEARISH trade. The entry will be 2809, initial stop of 2828, and a target of 2718. This would give us a max risk of 19 and a reward of 91. This will be a over a 4:1 reward/risk ratio. Here is the chart setup:
Remember, the email alerts showing you opportunities where the instrument is getting to “border line”. We then have to determine which way to trade it based on the higher time frames. In this case, we went opposite to the 3 time frame buy.
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.