The new Stochastics Divergence and ATR indicators set the mood for the day. The Stochastics Div indicator identifies when there is weakness in the trend and that it may change course. The Trend ATR easily identifies where the support or resistance is. Here are some examples.
Stochastics Divergence and ATR Indicators
The Stochastics Divergence indicator plots either a green dot (expect upward movement) or a magenta dot (expect downward movement) when trend divergence is detected. Then if price goes to the ATR (plus sign) but doesn’t break through, more than likely price will continue in the original direction. If the ATR is broken (flips to a different color) then a big move is expected in that direction.
Here are the trades from following the stochastics divergence using binary options (although the trade setup remains the same for futures, commodities and forex). The profit or loss is marked by the “X” for a loss or a checkmark if the trade made profit:
With 3 daily positions remaining, the profit for the morning, if trading just one contract, is $330.50 at the moment. Even if the remaining contracts lose money, the profit will be $221.75. Again, that is based on trading just one contract each.
The Stochastics Trend Divergence is only available for TradeStation or Multicharts. The Trend ATR is available for TradeStation, Multicharts and NinjaTrader 8. Click here to take advantage of the specials before they end on Friday, April 21st.