On April 2, 2014, we received an Ichimoku 6 time frame Buy email alert on EW, Edwards Lifescriences for the SP500 for the US Stock market from www.ichimokutrade.com. Here is the email alert:
Since the 2h time frame had a Cloud breakout value (4), we setup the trade for that time frame. The blue arrow shows where the email alert was received. The pull back trade would be within the consolidation pattern so we setup for a breakout trade instead. The entry would be 76.15, initial stop of 72.38, and a preserve mode of 78.88. This would give us a min. reward of 2.73 and a max risk of 3.77. The reward/risk is less than 1:1 so this trade is not worth our time placing at all. We are looking for a trade setup for a breakout of 1:1 so it will become a 3:1 when we enter the trade. By not placing trades less than 1:1 for the breakout trade, we save ourselves a lot of “wasted” time. We get to concentrate on trade that have a potential of 3:1 or higher. Here is the chart setup:
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