Trading eminis using either the Average True Range stop or the Congestion Dot (both of which are built-in to the TradersHelpDesk Trend ATR netted over 170 points.
The Trend ATR (aka the Average True Range stop) displays an abundance of information by changing the color of the price bar to identify what price is doing.
- The price bars are either red, blue, gray or magenta.
- Blue price bars indicate that the trend is up
- Red price bars indicate that the trend is down
- Magenta price ars indicate a wide bar has occurred and typically these bars will retrace at least fifty percent of the bar that turned magenta
- A gray price bar indicates that price is “close enough” to the ATR or to the Congestion Dot to take a trade
All the trades were extremely simple, price at the ATR or the Congestion Dot with diverging volume as these areas enable you to enter using at the lowest point of risk. In other words, if the market goes against you, then you are stopped out with a very small loss versus a larger loss.
Using this simple methodology, there were trades were executed on ES, Dow, and Nasdaq resulting in profits on each.
Trading Eminis Nets Over 170 Points
It was really textbook examples as price moves down, then retraces, then moves down again. The lowest point of risk (even with volatile markets) is when price retraces but the question has always been – where will the price retrace to? The answer is simple – price typically will go to the ATR (average true range stop that is built in to the Trend ATR).
And we have designed alerts so that you always know when price is at an ATR so you never miss a trade. This simple entry methodology netted over 170 points this morning, while minimizing risk to only ten ticks per trade!