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.
Here you can see EURJPY pulled back to the 4.2.1.30 MTF. Held and broke the pivot low for a break out. This is the set ups I like to see.
Here is the GBPCAD. It has a 4.2.1.30.10 MTF. As you can see, it did not pull back to the MTF so the sentiment is telling me its strong. So my rules tell me to set up a break out. But I have a past pivot low I’m concerned about as well as a Weekly SKB that its sitting on. Another thing I don’t like is there is no strategy on the weekly. So I’m going to stay out and watch this one.
Here on GBPUSD price did not pull back to the 4.2.1.30.10 MTF, so sentiment is strong. My only concern is the break out entry is sitting on support. As you can see it was strong enough to break support. I would suggest placing the break out entry below the lowest pivot support to protect yourself from any possible bounce that could happen.
Here on USDJPY, price did not pull back to the 4.2.1 MTF showing strong sentiment that price is strong. My rules tell me to now place a break out order. But I don’t have a good reward risk. I need a 1:1 for a break out but the pivot low does not give me that reward risk.
Here we can see on AUDUSD is in a consolidation. No real set up. It tires to retest the top of the range and fell short and reversed.
CADJPY pulled back across the MTF and reversed. Broke out on the other side. remember email alert can be a high probability to trend but also a high probability to reverse.
Here we can see EURCAD did not pull back to the MTF so the sentiment was strong. The break out did not have a 1:1 but still managed to trend.
Here NZDUSD managed to break out. Take a look at the chart for the set up.
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.
