Ichimoku Time frame Email alerts: Reverse Psychology

We talked about this on the webinar the other night that we had that went through the website tools.    With the multiple time frame email alerts, we can see when everyone is thinking one sided.  It doesn’t always mean that it is going to go the way everyone is thinking.  In fact, majority of times it wont.   As a result, a trader should be thinking if it doesn’t, at what point, will I look for a trade to go the opposite side.   If it goes opposite, it will move fast too because everyone will be panicking to get out.

Here is an email we received this morning.

aug18_currency

Notice, the email alert, there was nothing in the 120m,240m, and daily time frame.   This indicates that there is some weakness on the higher time frames for it go bearish.

Due to the weakness, we are now going to monitor the 10m time frame to see if the resistance on that time frame holds.   Here is the chart:

aug18_currency_chart

The red arrow indicates where the email alert was received.   The cloud and the green line (Kijun Sen) are the major resistance for the 10m.   The pivot low was going to be the support.   Therefore, we had it “trapped” and had to just wait to see what it was going to do i.e. break the support or the resistance.

Notice, it broke the resistance.  This is now showing signs of bullish so all you have to do is wait for a bullish setup.    We will wait for price to balance around a 10m support.  Once it does, we will enter a pull back trade on the 10m to go long with a very tight stop.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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.

About the Author Manesh Patel