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.
We can see here that we have a MTF on the 4.2.1.30.10m for GBPUSD. My only concern is that it tired to break the low once and could not. There could be some volatility on the pull back.
Here we can see GBPCAD broke the MTF. Now we are looking at a reversal. I will look for a pull back from this point.
Here we can see EURCHF pulled back to the MTF but not a go reward risk. Be later to take a look at the break out. But we would need to look at the next pivot low.
Here is GBPAUD, there was a pull back to the 4hr KS. It held and now is retesting the low. This email came out after that so I have considered two possibilities. Either take the break out on the 1hr or look for a 10.30.60m MTF pull back to keep my risk low. The picture above is of the 1hr break out.
Here is CADCHF, It has a 2.1.30.10m MTF looking for the signs. A pull back to the MTF., if it doesn’t pull back to the MTF then a break out on the 10m… Things to consider. The Daily is in a cloud break out and forming a pivot. Could need a pull back. if that is the chase then we would need to see the MTF not hold. and then look for a reversal from the MTF.
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.
