$LSE UK Stock market trade of the week $DGE-LON Daigeo

Posted on March 20th, 2017 by

$LSE UK Stock market trade of the week $DGE-LON Daigeo.   On March 10, we received a 5 time frame Ichimoku Buy email alert on this instrument.   Here is the email alert:

2017-03-20_064615dge_email

The UK market is still going through the “BRIEXIT” so a lot of the instruments are consolidating.   We need to make sure we trade an instrument that has a trend on the higher timeframes.   Therefore, we will examine the higher time frame before executing a trade setup.

Below is the daily timeframe provided by eSignal.

2017-03-20_064940dge_daily

The green arrows shows when the email was received.   Price has been in a bullish trend since Jan.   Recently, it has gone through a medium pull back with a resistance of 2293.785.   On the day of the email, price has just broken this resistance and there was a high probability of the trend to continue.     This was good so we proceeded to the lower time frames.

Below is the 240m time frame.

2017-03-20_064545_dge_lon_240

The email alert was received in the green bullish zone.    In the zone, there were black square support so we can place a pull back trade or break out trade.   The pull back entry would  be 2261.00, initial stop of 2252, and a preserve mode of 2293.   This met our money management requirements.

For the breakout trade, the entry would be 2298.60 and initial stop of 2252.   If this breaks out, there is no preserve mode since it will be making new highs.      This risk in this case is huge so lets look at a lower time frame for a possible breakout trade.

Here is the 60m time frame:

2017-03-20_065310dge_60

 

On the 60m, the green arrows show we were in a bullish trade setup.   The breakout on the 60m would be 2282.23, initial stop of 2251.00, and a preserve mode of 2294.19.    This did not meet our money management requirements.    As a result, no breakout trade could be taken, only pull back.

From the results, you can see the pull back never occurred so no trade was entered.    However, once the trade was broken out i.e. resistance at 2282.23 was broken, a trend continuation trade on a pull back to the purple dots at 2282 on the 60m chart occurred.   The entry was 2282,23, initial stop of 2278.07, and a preserve mode of 2300.00.

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

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