Day trading ES for another 28 points today. Price was making it’s way down from the congestion dot on the 45 minute chart. It was at the ATR (average true range stop) on the 3 minute chart with diverging volume. I entered and then exited later when the 3 minute chart showed an ADX magenta peak, which coincided with price being at the ATR on the 45 minute chart. Total gain on this trade: 28 points
Even though everyone is talking about the blood bath in the markets today, I would say it was raining money right off the ATRs as I was able to capture 202.75 points. Was it volatile? Yes but support and resistance still works because price moves down, retraces, then moves down again. As traders, we have to learn how to identify where the retracement will go and trade accordingly. The Trend ATR identifies these areas for you and when combined with the power of volume and the ADX magenta peaks, trading becomes systematic.