Ichimoku Currency Trade of the Week 2-8-13 : GBPCAD Forex

On Feb 4, 2013, we received an Ichimoku 5 Time frame Sell on the Currency GBPCAD for the Forex market.  The email alert is shown below:

The GBPCAD is a big consolidation pattern.  As a result, we need to setup a Pull back trade on the 4hr timeframe.   All the other time frames look too busy.  The entry is 1.5756, initial stop of 1.5794, preserve mode value of 1.5663, and a target of 1.5663.   This would give a max risk of 38 and min. reward of 93.   This would give us a min. reward/risk of 2.5:1.   To the target, we would get us a 6:1 reward/risk ratio.    If you are an aggressive trader, you would take it but if you are a conservative trader, you would not take it since it is not exactly a 3:1 reward/risk ratio.   Here is the chart setup:

We got stopped out at 1.5663 which is below the preserve mode value.

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About the Author Manesh Patel