On Dec 02, 2015 at 5am EST, we received an Ichimoku multiple time frame sell on the UK Stock TSC0-LON, Tesco PLC. Here is the email that was received.
Our trading plan dedicates that we can only take cloud strategies which are the highest probabilities strategy. This is a #4 on the email alert. The lowest time frame with a #4 is the 60m so we will look for a pull back or breakout entry on the 60m.
Below is the 60m chart from eSignal for TSCO-LON. The 60m resistance is at 168.63 but the daily resistance is 169.10. Even though the 168.63 is a very strong resistance for the 60m time frame, it is not an institutional resistance since it is not a major resistance on the higher time frames. Since we aren’t dealing with a multiple time frame resistance, this is NOT a high probability trade. With no high probability setup, it is not worth our time to take this trade. The best trades are sometimes the ones you never enter.
Below is the result of the trade. If we had entered the trade, we would have lost. This is case, price didn’t even pull back and hold the daily resistance. It actually went higher.
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