Trading Euro Currency Future on Thursday nets a profit of 65 pips. The key was the higher timeframes as the ADX was indicating an oversold status on the 720 minute. If the 720 minute ADX magenta peak came in, then a magenta peak would also form on the 1440.
Trading Euro Currency Future
These are the trades that create super trends on the lower timeframes because the moves are being fueled by the power of the higher timeframe. As the 720 chart shows below, the magenta peak forms indicating a retracement back to the 720 minute ATR. Traders that trade the higher timeframes could have taken this trade directly off the 720 minute chart (which is what I did), especially because we had very narrow bars on the 720 so the risk would have been low and the trade made 75 pips of profit using the ADX strategy for entry and exit. In addition to the Euro Currency Futures contract, the trader could also trade the spot forex chart and/or the weekly binary option. All three trades were profitable.
Another option was to zero down in time. In this case, using either the 12 minute charts with the ATR strategy produced a minimum of sixty-five pips of profit.
Of course, using the TradeStation RadarScreen with the THD indicators inserted, the magenta peak was highlighted and an email alert to your smart phone gives you instant notification that the trade is coming in.
Although the 12 minute chart offered a slightly lower profit target, this timeframe could also lower a trader’s risk. Plus, the 180 magenta peak appeared before the 720 and, in effect, rolled into the 720 minute chart. By tracking where your ATRs are on both the 180 and 720, then the 720 magenta peak was anticipated because a retracement to the ATR on the 180 minute chart would generate the retracement on the 720 minute timeframe, as well.