Even though there is a FOMC announcement today at 2pm, the trade analysis this morning clearly indicated a downward move at the opening and was confirmed by the shorter time frames resulting in shorting futures using Nadex Touch Brackets.
Shorting Futures – Nasdaq Trade
The trade setup on the Nasdaq right at the slow moving average, showing that the fast moving average on the 60 minute chart was holding. The initial profit potential was at least 20 ticks or greater if it broke through the ATR and continued down (as it was going into the higher time frames).
At the open, price did move down through the 15 minute ATR, down to the congestion dot on the 60 minute chart and profit was taken.
Here’s the ES charts (entry and exit).
And the Russell 2000.
Of course, the trade analysis also indicated the AUDJPY would go down, as well as the AUDUSD. I opted to trade both with an OTM binary option and both made their targets.
Not a bad morning considering it is FOMC day. Plus, I have four weekly stock options working based on the same approach — after all, a chart is a chart.
The trade analysis sheets, which are used in the coaching sessions so traders learn how to utilize a multiple time frame approach, are used to identify the direction of the higher time frames but then actual entries are generated off the lower time frames — in other words, we are going into the higher time frame setup. The analysis technique works especially well with the Nadex Binary Options and Nadex Touch Brackets because of the limited risk enviroment that they provide.