Intraday trading the mini Dow Jones this morning, I took two long trades. They both began on the higher timeframes. The 180 minute chart had an ADX magenta peak and the 45 minute had already flipped the average true range stop and went back to test the same area for support on diverging selling volume.
Intraday Trading the mini Dow Jones
On the three minute chart, there was another ADX magenta peak, indicating a pullback to the average true range stop. When price pulled back, sellers were decreasing so I entered a long position. Then a high volume area was formed so I exited the position. Price then retraced to the average true range stop again, and, again, sellers decreased indicating another move to the upside. I re-entered and exited when the price reached the congestion dot and the ADX was over extended, indicating a retracement in the near future.
Just another example of how the THD volume indicator, Average True Range and ADX increases your profitability when intraday trading.