Day trading using multiple timeframes with the ATR indicator is hard to learn but the most profitable trading setup. In this video, I show you why day trading using a confirming lower timeframe is so important.
Day Trading Using Multiple Timeframes With the ATR Indicator
Using the 45 minute timeframe as our guide, the ADX is showing the market as being overbought. The gold dots show me where the ADX peak will come in. By going down to a 3 minute chart, I am expecting a reversal trade to come in. That means that the ATR indicator, which was previously blue, must flip to red. Then price will move down from this area and retrace to the new ATR indicator (which is now red) to give an entry.
As you can see in the video, the one that follows the rules does exactly that. The one that loses money is the one that is NOT confirmed by the 3 minute trade setup. Then another trade setup comes in on the 3 minute chart (price is at the ATR indicator and this is where a lot of traders would enter) but it is not confirmed on the 45 minute because price is at a Blue ATR indicator, indicating that price will in fact go up (not down).
The video shows vividly why day trading with multiple timeframes is important for the trades to lineup and why I have always stressed using multiple timeframes to successfully trade any market.
You can join Gail’s Futures, Forex, and Binary Options trading room by clicking here. Gail uses the THD Strategies in the live trading room to help traders visually identify when the multiple timeframes are lining up and price is at the ATR indicator for entry.
The THD Strategies automatically highlight the entries for you. The ATR strategy also identify the profit target and has two built-in stops. One stop is based on the ATR stop indicator and the second stop kicks in once a minimum profit target has been achieved. Then the stop follows price closer to get more profits.