Stock Trade of the Week : March 5, 2014 -> 7 time frame Ichimoku Buy VRTX, Vertex Pharmaceuticals

Posted on March 10th, 2014 by

On March 5, 2014, we received an Ichimoku 7 time frame Buy email alert on VRTX, Vertex Pharmaceuticals  for the US Stock market from www.ichimokutrade.com.     Here is the email alert:

Weekly_stock_mar7_2014_email

If you look at all the US markets, the NASDAQ has been leading the bullish movement.   It is stronger than the SP500 and the DOW.   Therefore, we have been looking for bullish opportunities in NASDAQ and short opportunities in DOW and SP500.     The stock above was for the Nasdaq100.      The opportunity was a 7 time frame buy.   However, most of the time frames were not cloud breakout strategies.    Instead, they were a Number 2 strategy.   Typically a #2 means,  you are trading the major pull back which indicates limited profit.

Here are the 240m and the Daily charts:

Weekly_stock_mar7_2014_chart

 

Weekly_stock_mar7_2014_chart2

 

Notice on the daily and the 240m time frame, price had two opportunities to continue the trend by breaking the major resistance.    It had the cloud below as a major support.   Instead, it bounced off it and was allowing price to get closer and closer to the cloud.   If price enter the cloud, the probability of price continuing the trend would become low.

Due to the examination of the daily and the 240m, it was determined the probabilities were low for a bullish breakout.    Therefore, we were not going to take any bullish trade at all.   We will wait for one of two things to occur.   If price breaks the resistance then the trend will continue and we will then look for bullish trade setup on the lower time frame.   For aggressive traders, if price breaks below the cloud on the 240m, we will look for a bearish trade.     Since we are in a consolidation pattern, the trade on the 240m would have to be a pull back.

Since price is now below the cloud on the 240m, we are looking for a pull back to the green line for a bearish trade.

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.

Written by mpatel Edit

For educational purposes only. 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. View our full risk disclosure: https://www.ichimokutrade.com/c/disclaimer/

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