On July 23, 2013, we received a 5 Ichimoku Time frame sell Email alert on the future Soybean Oil. The email alert is shown below:
To keep our risk low due to the consolidation pattern, we are going to setup everything on a 2h chart for breakout trade. The entry is 45.05, initial stop of 45.53, and a preserve mode value of 43.77. This would give us a max. risk of 0.48 and a min. reward of 1.28. That would equal a 2.6:1 reward/risk ratio. For breakouts, we look for a 1:1 reward/risk ratio so when we enter the trade, it automatically becomes a 3:1 i.e. 300%. Here is the chart setup.
The trade was exited at the preserve mode value of 43.77.
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