Day Trading the Futures using the Dow and Nasdaq resulted in two profitable trades. The higher timeframe charts indicated an upward movement on the Dow Jones and the Nasdaq as both markets were oversold. I also mentioned this in the market overview for this week.
Day Trading the Futures – Dow and Nasdaq Trades
The 45 minute chart on both the Dow and Nasdaq showed an TradersHelpDesk ADX indicator at over 70 indicating the markets were overextended and would be retracing. Plus, the TradersHelpDesk RSI indicator also showed the markets as being oversold because the histogram was below the -50 line. An ADX magenta peak was anticipated which would push price up to the Average True Range Stop Loss on the 45 minute chart. All I had to do was wait for price to test the Average True Range Stop loss for support on the 3 minute chart and, if the Directional Volume indicator showed selling divergence (meaning that sellers were drying up and would not take price lower), then an entry would be generated.
On the Dow Jones, the entry was at 17360. Since the price bars were large, I zeroed down to a 1 minute chart to move my stops up. I exited the trade at 17394. A gain of 34 points.
On the Nasdaq, the entry was at 4523.25. Again, I zeroed down to a 1 minute chart to move my stops up. The trade was exited at 4537. A gain of 13.75 points.
Day Trading the Futures – Dow Jones and Nasdaq