At 2:07 pm EST, we received a 4 time frame Ichimoku Sell Email alert on the Currency GBPUSD for the Forex market. Here is the email alert:
The lowest time frame is the 60m so we will setup a pull back trade on the 60m time frame. The entry will be 1.6963, initial stop of 1.6969, and a preserve mode at 1.6937. This would give us a min. reward of 25 pips and a max risk of 7 pips. This is over 3:1 reward/ratio i.e. 300+. Here is the chart setup:
Before we take the trade, we are going to look at the higher time frames. This morning, we had two trading opportunities. One was trading within a consolidation pattern and we were going to trade it to the bottom support which was close to the entry. The other one bounced off the bottom of the consolidation pattern. We lost on the first one and winning on the second one. If you look at the weekly and the monthly time frame for the gbpusd, the preserve mode is a major support on the weekly (Tenkan Sen) and a major support on the monthly which is (SKB). Therefore, the probabilities are low on going lower than the preserve mode. For the aggressive traders, this is ok but for the conservative traders, this is not a potential trading opportunity due to the probabilities. Here is the weekly chart:
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.