April 26

Stock Trade of the Week : April 25, 2014 -> 6 time frame Ichimoku Sell BBBY, Bed Bath & Beyond

0  comments

On April 21 2014, we received an Ichimoku Forex 6 time frame Sell email alert on Stock BBBY, Bed Bath & Beyond from www.ichimokutrade.com.  Due to the markets back close to the top of the consolidation pattern and also needing a pull back, we are looking for some high probability short trades.     Here is the email alert:
weekly_stock_4_25_14_email
One of the topics in the Ichimoku Option Course is day trading with options on Earnings and Gaps.   This is a perfect example of one of the strategies.   On earnings, the stock gapped down.    We want something that is day trading but can evolve into a swing trading mode to max. of the reward/risk.     Therefore, we are going to setup a trade on the 60 minutes.    The 60 minute show proof that the stock was still very strong since it could not fill the gap at all.  This increased our probability of success towards the bearish side.
We waited for a multiple time frame sell signal for this stock.    We received it on April 25, 2014.    The red arrow shows when the email was received.     We setup a entry to the red line since the red/green were close enough and we didn’t want to miss this opportunity.   The money management calculations will protect us for a wrong trade.
The entry was 64.03, initial stopp of 64.49, and an initial stop of 62.68.   This gives us a max risk of 0.46 and a min. reward of 1.35.    The reward/risk of 3:1.    Since the IV is still low for the options, we can make money on the price movement along with Volatility.  Here is the chart setup:
weekly_stock_4_25_14_chart
We are now in preserve mode.
To 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.


Tags

bats, cme, dow30, Ichimoku, nasdaq, nyse, options, S&P500, stock, Strategies, Trading


You may also like

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}