Trade of the Week – Gold Futures Ichimoku 6 Time frame Sell . On Dec 22, 2016, we received a Ichimoku 6 time frame sell signal our iMTF™ strategy finder. Here is the email alert:
Everyone has been bearish on Gold. Gold has been in a bearish trend from Nov from 1341. This email alert is a trend continuation. Below is the weekly chart and the blue arrow shows when we got the email alert: We have been going down drastically for 7 weeks now and a bullish pull back can occur any time so we have to be careful and keep our risk low.
Below is the 60m chart. We are going to look at the lowest swing trading time frame for a pull back trade to keep our risk low. The trade setup is shown. The iMTF™ was a the Tenkan Sen which will introduce more risk. The risk was soo big that the Reward/Risk is not 3:1 so we can place this setup trade at all.
Below is the Breakout evaluation on the 60m. The preserve mode is retesting the low. The reward/risk was not good either. Therefore, no breakout trade could be placed.
No trade was entered. Sometimes, the best trade are the one’s you don’t enter. Better to be at zero then to be negative. If you look at what happened, the trade didn’t retest the low and reversed so a bullish pull back has not occurred. The bullish pull back has now progressed all the way to the 2h time frame and price has reached 1152.
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