It's important to note that this trade later generated a near simultaneous hidden Add On trade basis both the 2-day and weekly charts in late April (labeled as such in each of them), offering even more profit potential with an even lower risk requirement to assume the initial trade!
Also, because the overall price action was being driven from the weekly timeframe, EchoStar went on to generate three or four additional Ocean sell setups and entries from April through July 2004, while the original trade used in this example was never stopped out.
In this illustration we've managed to find a trade with a weekly profit potential and to enter the trade at the daily time frame with a risk profile from a daily perspective.
Had we used only the weekly time frame, the risk to assume the trade would have been more than 3 times as great as that which was possible from the daily time frame, while also adding more than $1.50 to the overall profit potential of the trade.
Here we've seen how multiple timeframe Ocean analysis has given us the added confidence of triple time frame agreement, the added profit opportunity of a better entry price and accomplishing all of this while also drastically reducing the risk of the trade.
These are precisely the hoped-for goals and why we stress this Ocean methodology as a means of more intelligently conducting a trading campaign.
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