On Oct. 25, 2013, we received an Ichimoku 3 multiple time frame Buy email alert on Grasim Industries Ltd. for the Indian Stock Market. The email is shown below:
The email alert was for a break out of the stock on the bullish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bullish side, it had a strong momentum supporting it. There was an ideal opportunity to take a break out trade. The entry was at Rs 2748.30. Initial stop of Rs 2697.50 and a target of Rs 2846.23 was set. That gave us a risk of Rs. 50.08 per share. As soon as the price started to move in the direction of the trade, a trailing stop method was applied based on proprietary Ichimoku Strategy. The trade is still in progress and profits have been locked in at Rs. 2792.81, thus giving us a locked in profit of Rs. 44.51 per share, with a risk : reward ratio of 1 : 0.9. The price moved very close to exit point, but missed the target by Rs 1.92. If the price moves up and hits the target, there will be a profit of Rs. 97.93 per share, thus giving us a risk : reward of 1 : 1.9. Here is the chart setup:
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