Monthly Archives: April 2016

Taking a look at the 7x and 6x email alerts for Currencies for the week of April 29

Posted on April 27th, 2016 by
CADCHF 6X ALERT

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 …
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US Stock Market vs Crude Oil vs Dollar

Posted on April 23rd, 2016 by
2016-04-22_escl

US Stock Market vs Crude Oil.    Another correlation is US Stock market vs the Dollar.  Everyone keeps on talking about these correlations so we wanted to see what the charts tell us over fundamentals which keep changing.

In order to see the charts, a customized Ichimoku relative strength charts was created in Tradestation.    Below are the weekly charts for the two correlations.

First, let’s talk about the US Stock market vs Crude Oil.  We have plotted the E-mini SP500 Futures against the Crude oil Futures.    The chart is going up which indicates the US Stock market have been leading crude oil.   However, for the last couple of weeks we are consolidating which really has not occurred since Oct 2013.   The more we consolidate, the higher the probability of the charts to go down because the supports are getting weaker.

Below is a chart of US Stock market vs US Dollar.  We have plotted the E-mini Sp500 vs Dollar futures.    The chart shows that we have reached a resistance.    Notice, the pivots are going down too.   If this patterns continues to hold, this means the chart will go down where the Dollar …
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US Stock Market vs Emerging Markets Update

Posted on April 22nd, 2016 by
2016-04-22_eemspy

US Stock Market vs Emerging Markets Update.   The normal question comes up every week, is it better to invest in the US Stock market or the Emerging markets.     Emerging markets have made a good percentage gain in the last couple of weeks due to Brazil, India, etc.   However, is this long term or short term?    We use a customized Ichimoku relative strength chart for the comparison.

Below is a customized weekly Ichimoku relative strength chart of #SPY vs #EEM provided by Tradestation.     If the chart goes down than Emerging markets is better than the SPY and vice versa.

The chart is bullish where the US Stock markets has been leading the emerging markets.     A major support has been holding it up.     If this support gets broken then the Emerging markets can have a 9.12% gain over the US Stock markets.   If this support holds then the US Stock markets will have a 3.28% gain versus Emerging markets to the next resistance.

Until the support is broken, the probabilities are bullish but with caution because the lower time frames are starting to turn bearish with the last 2 …
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How High Will the US Stock markets Go?

Posted on April 20th, 2016 by
2016-04-20_es_weeklyt

How High Will the US Stock markets Go?   This is the question everyone is asking these days.    One month ago, everyone was short the stock market or in cash.    The people that were short got caught and had to close out their positions right away at market price.   This is one reason why the markets have gone up very fast i.e. short cover rally.

Now when the market gets to a resistance level, people are saying this is going to be the top and it can’t go higher.   Well, it is going higher.   This is why you always wait for “confirmation” before saying it can’t go higher.     For a confirmation to occur for an upward movement, you have to break a major support.     We have gotten to various resistance levels but we have yet to break a major support.   This is why we continue to go higher breaking more resistance values and now we are close to the all time high!

So where do we stand today?

Below is the weekly chart of the E-mini Sp500 futures provided by eSignal.     At the beginning of the year, our forecast …
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Taking a look at the 7x and 6x email alerts for Currencies for the week of April 22

Posted on April 18th, 2016 by
AUDCHF 6X ALERT

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 …
Read More >>

Futures 6/7 Timeframe Ichimoku Email Alerts for the week ending April 22

Posted on April 18th, 2016 by
April 18 - 6 timeframe buy - Cotton No2

Futures 6/7 Timeframe Ichimoku Email Alerts for the week ending April 22

The following analysis is based on a 3 Step Trading Plan published earlier. See following link for original post: https://www.ichimokutrade.com/c/?p=10431

 

6 timeframe buy alert on Cotton No.2 on April 18 @ 11:58EST. I identified an iMTF support on the 10m/30m/60m, however, by the I saw the alert, price was already at the pivot so I looked for a breakout setup instead of a pullback. The breakout did not provide a good reward-risk so we did not take this trade. Another thing to note is that price is very close to a major resistance on the Weekly timeframe so we don’t want to be taking a bullish trade and get caught up in a messy situation.

 

6 timeframe buy alert on the Emini Nasdaq 100 on April 18 @ 14:58EST. I identified an iMTF support on the 30m/60m/120m/240m; I decided to setup my pullback entry at the iMTF off the 60m. Update: Price never pulled back to the iMTF level so we did not get a pullback trade; we then looked for a breakout trade but it had a poor Reward-Risk so we walked away from …
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Ichimoku Futures Trade for the Week ending April 15, 2016: 5-Year U.S. Treasury Note

Posted on April 17th, 2016 by
April 10 - 6 timeframe buy alert - 5yr Treasury Note

On April 10th, 2016 we received an Ichimoku 6 timeframe BUY email alert for the 5-Year U.S. Treasury Notes. The email alert if shown below:

There was a bullish cloud breakout strategy on the 30m chart, after which we looked for a pullback entry. Our entry was 121’142, with an initial stop of 121’135, and a target of 121’170. This setup provided us with a reward-risk ratio of 4:1. We got entered into the trade during the 18:30EST bar after which we held our pullback level and went straight to our Preserve Mode – successful trade!

 

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 cannot 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 …
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Futures 6/7 Timeframe Ichimoku Email Alerts for the week ending April 15

Posted on April 17th, 2016 by
April 10 - 6 timeframe buy alert - 5yr Treasury Note

Futures 6/7 Timeframe Ichimoku Email Alerts for the week ending April 15

The following analysis is based on a 3 Step Trading Plan published earlier. See following link for original post: https://www.ichimokutrade.com/c/?p=10431

 

6 timeframe buy alert on the 5-Year U.S. Treasury Notes on April 10 @ 17:59EST. I identified an iMTF support on the 30m/60m/120m; I decided to enter at the MTF support off the 30m chart. The pullback provided us a reward-risk of 4:1. We got entered into the trade during the 18:30EST bar after which we held our pullback level and went straight to our Preserve Mode – successful trade!

 

  

7 timeframe buy alert on the 10-Year U.S. Treasury Notes on April 10 @ 23:06EST. I identified an iMTF support on the 30m/60m/120m; I decided to enter at the MTF support off the 60m chart. The pullback provided us the 3:1 reward-risk that we look for. On this trade we got stopped out for our initial risk which we are totally ok with! In hindsight we can see that since we did not have a matching support on the higher timeframes (240m/Daily etc..) we entered knowing that we had a lower probability of success to begin …
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Taking a look at the 7x email alerts for S&P400 for the week of April 15

Posted on April 17th, 2016 by
1304_7MTF_CRS_Alert

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 …
Read More >>

Ichimoku UK FTSE Stock Trade for the Week ending April 15th, 2016: ASHM-LON, ASHMORE GRP

Posted on April 17th, 2016 by
41715ASHM

On April 8th, 2016, we received an Ichimoku 4 time frame Buy email alert on ASHM-LON, ASHMORE GRP for the UK FTSE Stock Market. The email alert is shown below:

We had a multi-time frame support around 283, on pretty much every time frame that we look at.  We had an opportunity to take a breakout or pullback.  Problem with breakout was we did not have a 1 to 1 reward to risk, which means we can’t take the breakout.  So we looked at the pullback and we had a reward to risk greater than 3 to 1, which means we can take the trade.

Our entry was 283 with a stop at 281 and the preserve mode at 292.  The 292 level can be used as a target also, in which case you would be out at that level with a 4.5 to 1 initial reward to risk ratio.  However if you see the potential for a breakout from that level, you can set the level as a preserve mode, meaning that you tighten up your stop to protect profits.  In this case if we used it as a preserve mode we would have taken it up to 307, giving us …
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