Typically a Heatmap 7 time and 6 time frame email alert is high probability for a trend to begin. But it can also be a high probability to reverse. I’m using a 3 Step Trading Plan. 1st I find an Email Alert. 2nd find the major iMTF (ichimoku Multi Time Frame) support/resistance level. 3rd Money Management. Find my stop by using ATR (Average True Range) 26(BARS)/2. Then take that value and deduct it from the iMTF. Trail stop off the kijen-sen (26 bar line). Look for 3:1 reward/risk for pull backs and 1:1 reward risk for break outs. Lets take a look at this past weeks email alert.
Watching how price reacts to these iMTF’s, you can tell you a lot about he chart. You can see how strong the sentiment of the chart is. Here are a few rules to consider with iMTF’s and its relation to price.
1. If price does not pull back the iMTF, then we have strong sentiment for a break out.
2. If price pulls back to the iMTF and holds, we now have a pull back with a high probability to the pivot,
3. If price does pull back to the iMTF and breaks it, then we have weakness, which could lead to a consolidation or a reversal.
Rule one is really strong sentiment. Rule two is strong and probabilities can be increased with optimization rules. And rule three is weakness, which can also be looked at as counter trend strength.
This is a 2hr pull back. It did not pull back to the iMTF, so my rules say take break out. I dont have a good reward risk for the break out so I cant take the trade.
Here is a CHFJPY 1hr KS PB. Has a MTF on the 4.2.1.30.. Really like this set up.
Here you can see NZDCAD already pulled back to the MTF. Trade was missed but notice it hasn’t retested the pivot low yet. Keep any eye on this. If it falls short of the pivot, then we could get a reversal to the MTF again. If it does hit the pivot and setups up for a break out, the break out will be no good because it doesn’t give you a good reward risk. Not much of a trade here. Unless the reverses and we look for a lower time frame set up to retest the MTF.
Here on AUDUSD you can see a MTF at .7677, but when the alert cam e out it already made a pull back. Never triggered the pull back so my rules say break out but as you can see it never even broke the pivot so I’m seeing signs of weakness. Now its coming back to retest the MTF again but also creating a MTF resistance which means it could bounce around and consolidate.
Here is CADJPY bullish it hit the MTF and crashed through it as t he alert came out. So rules show me weakness and a possible reversal.
EURCAD was bearish but as the alert comes out, price decides to go bullish. So again we are looking at weakness. Look for a pull back for the reversal.
USDCAD was all bearish but we had a bullish Kijen-sen pull back. It held and is retesting the pivot but the email alert was late to give a chance to take the set up.
Again GBPCAD reversing but pulling back to a higher time frame MTF. See if the 1.8304 holds. If it dies we can only play to the 1.8177 support.
Take these multi time email alerts and look for Ichimoku Multi Time Frame (iMTF) support/resistance to find low risk pull backs. You can see how important it is to identify the iMTF. So when looking at the email alerts, the first thing I want to look for is the iMTF. If there is no iMTF then I don’t take the trade. If there is an iMTF, then I place a trade at that iMTF. If price does not pull back to the iMTF then this means the sentiment is strong and then I place a break out order. Use the chart to give you clues to what price wants to do. Also don’t forget about reversals. If price breaks the iMTF then look for it to come back and retest it for the reversal. As you can see there are great opportunities to find a trade. Ichimoku is designed to save you time, so is this website. Take advantage of the multi email alerts, combined with real time scanner iMTF’s to help you find high probability trades.
If you have any questions about how to use the multi time email alerts or set up real time scanner, email me at mcolquitt@ichimokutrade.com. I will set up a 30m help session.
If you would like to learn how to trade like an institutional trader or 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.
