On August 12, 2013, we received an Ichimoku multiple time frame sell on the stock BMR, BioMed Realty Trust inc. The email alert is shown below:
The highest time frame as the 240m so we will setup the trade for this time frame. The stock was initially bearish trending and then experienced a major pull back according to the higher time frames. We are going to setup a pull back trade to retest the pivot low and then protect our profits to break it. The entry is 20.08, initial stop of 20.30, and a preserve mode value of 18.71. The max initial risk is 0.22 and the min. reward would be 1.37. This would give us a min. reward/risk of 6:1 i.e. 622%. The chart setup is shown below.
The trade triggered and we are already in preserve mode. Our stop now is 19.05. Since our stop is below the entry, this is a free trade. As the trend continues to go down, we will lock in more profit.
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