On May 13, 2015, we received an Ichimoku 3 multiple time frame buy email alert on BEI.D-CHX, Beiersdorf AG for German stock market . The email is shown below:
The German DAX Index has been going through a major pull back and has been holding the major pull back support. As a result, we have been focused on looking for bullish trades. In order to keep our risk low, we are going to use a pull back strategy.
The lowest time frame, there is a strategy is the 240m. Therefore, we are going to setup the trade on this time frame. With price still not above the cloud to have the sentiment to be bullish, we are going to have a target instead of preserve mode since we are still in counter trend mode on the 240m time frame. The entry will be 79.18, initial stop of 78.73, and a target of 81.21. This gives a max risk 0.45 and a reward of 2.03. This would give us a 4:1 reward/risk ratio. Here is the chart setup:
The target was reached and the trade was exited as per our trading plan.
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