Ichimoku Currency Trade of the Week: Dec 16, 2012 Forex USDSEK

Most people ignore the “exotic” currencies but they shouldn’t.   As a trader, you should be diversified.   As a result, this week’s currency trade of the week will be the USDSEK.

Below is a 5 timeframe sell email we received on at Dec 17 @6pm EST for the Forex Currency USDSEK.    Based on the email, the trade could have been taken on the 60,120m,240m, or daily timeframe.  We decided to take the trade off the 2h time frame.

 

The multi time frame email are opportunities but does not mean it is time to enter the trade.   They still have to break the last support/resistance.  For this trade, we setup for a breakout trade entry.  The entry was 6.6318, initial stop of 6.6792, preserve mode of 6.5821, and a target of 6.5079.    The initial risk would be 476 pips.  The max reward at the target will be 1237 pips.  To reach preserve mode will be 495 pips.    At preserve mode, we tightened the stop so we don’t give back all our profits.    The reward/risk is 2.5:1.   Here is the Tradestation chart:

On 12/19, we reached our target and exited the trade.

 

If you would like to learn how to trade using Ichimoku Kinko Hyo, go to www.ichimokutrade.com

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About the Author Manesh Patel