Crude trades this morning make 164 ticks of profit. While waiting for other setups, we looked at Crude. The 720 minute was indicating a potential magenta peak and the 45 minute chart was moving upwards. We had three trades come in, on diverging volume at the ATR. We took all three trades using our basic methodology and using the Clipper to take profits. After 3 trades, our net profit was 164 ticks for the morning.
Crude Trades this Morning
While these patterns may seem hard to recognize, all we did really was follow the THD ADX methodology, with bounces off the ATR on diverging volume. However, our direction was dictated by the higher timeframe — in other words, before I ever looked at the 3 minute chart, I knew I would be going long. That was what made it so simple — I didn’t have a lot of analysis or justification to do on the 3. All I needed was a low risk entry (each trade was under 10 ticks of risk per contract).
At the upcoming Advanced Seminar, we will be focusing on reading the higher timeframes to determine which direction we will be trading. Only after we can determine the direction will we look to our lower timeframes. This has been the one skill that I find that traders are missing. The RadarScreen and Scanner windows will be our best friend. Instead of just a few hours of live trading, we will be doing over 24 hours of live trading and studying multiple markets. No longer will you be sitting and waiting for the trade setups – instead, you will know exactly which markets to be jumping on — like wheat, corn, crude, gold and many others. We want to maximize our efforts to build our accounts and that means expanding our business to other markets and timeframes. You are not going to want to miss this seminar!