Entered the EURJPY off ATR stop (short position) using a combination of timeframes including the 720, 180 and 12 minute chart. Currently the stop is less than ten pips from price with a profit potential of about 40 to 45 pips.
EURJPY Off ATR Stop on 720 Minute Chart
When I opened the TradeStation RadarScreen this morning, the only good setup was the EURJPY because it was at the ATR on the 720 minute chart and the 180 minute chart showed magenta ADX histogram bars. Analyzing the volume with the TradersHelpDesk Directional Volume indicator showed that buyers were decreasing as new highs were made. Icing on the cake was that price was overextended on the Floor Trader’s Pivots. Going down in time to the 12 minute chart, price had flipped the ATR and was indicating more downward movement. Entry was at 126.71. The original stop was at 126.85.
Since most markets around the world are closed today, with the exception of the US market, slow movement was anticipated. Currently, the position is still open with a profit target set at 126.30 and the stop moved down to 126.80 (less than ten pips from entry).
In the short video below, I also show a couple of binary trades that were entered on the Dow Jones and the Russell 2000. The Dow binary trade uses a daily binary strike price and the Russell 2000 uses a weekly binary strike price.
Both binary trades had less than $25 of risk per contract. The Dow Jones was at a congestion dot on the 180 minute chart with diverging volume. The Russell 2000 has a potential Wolfe Wave and is at Point 4. This is an aggressive entry using the binary options which I wrote about yesterday on the THD Blog. The weekly strike price was within 20 points of price and on average the Russell moves about 15 points per day. Although I don’t normally trade the Russell, with a risk of less than $25 for a major move to the downside, if the Wolfe Wave begins to play out, was an opportunity that I felt comfortable taking.