Day trading the futures this morning, I took four trades. One on the Dow, Crude, Aussie Dollar and EURUSD forex pair using the Euro Futures for volume price analysis. The trade entries are always at either the average true range stop or the congestion dot. We simply verify that volume is diverging using the Directional Volume indicator.
Day Trading the Futures – Crude Light
On the Crude trade, I scratched it with 3 ticks profit per contract when the Directional Volume indicator revealed that buyers did not come in as anticipated. I had anticipated buyers would come in strong and they failed to do so.
Day Trading the Forex – EURUSD
I also took a trade on the EURUSD spot forex pair using the Euro Currency Futures for Volume Price Analysis (as it has less noise). The trade resulted in 60 pips of profit per contract. I am showing the 15 minute chart because FXCM does not have the 12 minute timeframe that I normally use.
Day Trading the Futures – Aussie Dollar
I also entered an Aussie trade as it was in congestion with sellers diverging at the Congestion Dot (using the Directional Volume indicator for identifying the volume divergence). My target was 30 pips and I exited with 29 pips of profit per contract.
Day Trading the Futures – Dow Jones
Finally, I also entered the Dow Jones as it was also in a congestion area with sellers diverging on the Directional Volume indicator as it reached the Average True Range Stop Loss indicator. This trade also made about 30 ticks per contract.
How did I know these trades were coming in? The NinjaTrader Market Analyzer showed price was at the Average True Range Stop or Congestion Dot. These are my entry points — all I had to do was read the volume at these areas to see if the trade was valid.