Forex / Currency trade of the Week: GBPCHF July 1 – July 6, 2012

On July 4, 2012, we received a 7 timeframe buy email alert on the GBPCHF. This would be a high probability trade if it triggered. Here is the email.

We decided to trade off the 1hr to keep the risk low. Below is the chart for the trade setup and entry that was triggered. The Entry was a pull back trade of 1.4944 with an initial stop of 1.4910. The preserve mode value is 1.5035. This is where we protect our profits by tightening our stops. The min. reward for the trade would be 91 pips with a risk of 34 pips. This is a reward/risk of 2/1, 267% min. profit.

The trade triggered and we are in PRESERVE mode right now. The current stop if 1.5104.

It is now a FREE Trade. With this stop value, this trade is FREE. We have no more risk. As the trend moves up, we lock in more profits. If we get stopped out, we gain a profit not a loss. This is how you trade the institution way. Good reward/risk ratio with technical analysis.

To learn more about how to trade like institutions or to learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com

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About the Author Manesh Patel