Yesterday, in the live trading room, I showed how the 1440 minute ADX Magenta Peaks on the forex symbols caused downtrends to form on the lower timeframes.

Although I traded earlier in the morning, at around noon on the CHFJPY, another entry came in.  Price pulled back towards the ATR, on diverging volume.  There were no higher timeframe magenta peaks that would conflict with the entry, so I re-entered a short.  I was able to capture Clipper 1 and Clipper 2, with a final exit at about 10pm to go to bed.  Total profits on the trade were 209 ticks.

 

This morning, we had an ADX magenta peak on the 180 minute Euro chart.  This indicated that an uptrend would develop on the lower timeframes.  Now, the Buddha trade would come in on the 12 minute but I decided to take a quick scalp off the 3 minute for Clipper 1 only.  The 3 minute made a magenta peak, pulled back to within 5 ticks of the ATR on diverging selling volume so I entered, risking 8 ticks per contract.  Clipper 1 was achieved and I exited all 6 contracts with 16 ticks profit per contract.

We have also had an ADX magenta peak on the Gold 180 minute chart.  However, I did not begin watching the charts until 4am ET, and the Buddha just came in on the 12 minute chart (with diverging volume).  Since price is only about 40 ticks away from the ATR on the 180 and there is no potential for a magenta peak on the 720 minute chart (which could propel price lower), I decided not to enter.  (With ony forty ticks of potential profit, entry would need to be extremely precise and I could only capture a maximum of Clipper 2.)