Trading DowThis morning there were beautiful entries for trading Dow and trading ES.  Trading Dow from the 45 minute ATR gives 89 points of profit.  Trading ES from the 45 minute ATR gives 14.75 points.  I did have to exit early because the trading room starts in just a few minutes.

In the video, I show the trade setups for trading the Dow and the ES and the resulting profits for each trade.  Our trade setups are always the same:

Trend Trading Dow

  • Identify the trend of the higher timeframe
  • On the lower timeframe, the ATR must match the color of the higher timeframe
  • Price must be close to the ATR indicator (plus sign)

Profit Potential is always at least double the risk on entry.

Counter Trend Trading Dow

  • Higher timeframe makes an ADX magenta peak
  • Look at color of ADX line
  • ATR on lower timeframe must be the opposite color (ie if the ADX line is red, the ATR on lower timeframe must be blue)
  • Price must retest the ATR indicator (preferably on lower volume)

Profit potential on the Counter trend trades is always the ATR on the higher timeframe or double the risk on the lower timeframe.

The THD Strategies automatically highlight the entries for you.  The ATR strategy also identify the profit target and has two built-in stops.  One stop is based on the ATR stop indicator and the second stop kicks in once a minimum profit target has been achieved.  Then the stop follows price closer to get more profits.

The THD Strategies will be available soon on a subscription only basis (either quarterly or annually) for clients that have the indicators.  Of course with our new subscription service, clients will always have the latest indicators, online training courses, and access to a weekly webinar on Mondays from 10am till noon.