Scalping futures this week using the ATR indicators with the Stochastics have produced really nice trades.  The setup is one of my favorites:

  • Minimum of 2 ATRs determine the trend direction (or entry direction)
  • Price returns to test the first ATR and forms hidden divergence on the Stochastics

A very simple yet effective trade entry for scalping futures or forex.

Scalping Futures this Week

The 3-minute Nasdaq chart below (using NinjaTrader 8) shows the Trend ATR (cyan or red ATRs and candlesticks) with the white ATR and congestion dots from the 12-minute chart, royal blue ATR and congestion dot on the 45 minute, and medium red ATR and congestion dot for the 180 minute timeframe.  This provides a clear and concise overview of the market using a multiple timeframe approach.

Scalping futures NQ for 9 points

Of course, if you notice, in addition to the hidden divergence, buyers also took control on the low providing a perfect entry setup with the hidden divergence and low risk trade entry.

While I fully anticipated price to reach the 6350 area, I am not willing to give back any profits.  With the Stochastics at 96 and a reversal bar complete, I opt to take the nine points of profit that the market is offering.

Of course scalping futures using the emini Dow Jones provided almost an identical setup, as well.

Scalping futures Dow entry

If the closest ATRs (in this case the cyan and white) are split, you don’t enter a trade — it’s that simple for beginners.  More advanced traders that understand the ATRs and TradersHelpDesk methodology will have more trades but that takes time to learn.

The Silver Package, which includes all the standard indicators, online video training, setup, documentation and Skype chat room, is on special right now for $1,495.

Or, for more experienced traders, who do not need the online video training and only want a few select indicators, then the Create Your Own Package would be ideal as you get to choose which three indicators you want.