On May 7, 2013, we received an Ichimoku 5 time frame Email alert sell on the Future Soybeans. The trading time frame was only 30m,60m, and 120m. We don’t see anything for 240 and daily which may mean this email alert may be counter trend. Here is the email alert:
In looking at the 2h time frame, the breakout entry would be below 1368 7/8. The 2h time frame looks very ugly. Here is the chart:
We are going to look at this price level on the daily time frame to get a clear idea on what is going on. The daily time frame shows we are trading within a big consolidation pattern. The price level from the 2h that we are marked is in the middle of the consolidation pattern. Here is the chart:
We are going to setup alerts and wait for price to tell us what is going on. Price actually decided to go up. When our bullish alert triggered, we setup for a bullish trade on the 60m to retest the top of the consolidation pattern. The Entry is 1383, initial stop of 1379, preserve mode of 1398 6/8, and a target of 1414 7/8. The max risk to the preserve mode will be 4pts and min. reward would be 15 6/8. This would give us a min. reward/risk of 3.75:1+ i.e. 375%+. We setup a target since we are trading within a consolidation pattern. Here is the chart setup:
We reached our target and exited the trade.
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