Trading European session using mini Dow Futures generates three trades and 94 points per contract. The trade initiated on the 45 minute chart as price was at the Average True Range Stop and everything showed it would go down. The entry was a little late as I was still wiping the sleep out of my eyes.
Trading European Session – mini Dow
The first trade setup, which was off the 45 minute chart, resulted in a gain of 70 points per contract. I exited the trade when the 3 minute showed a magenta peak coming in. On the second entry, using the 3 minute chart, price tested the ATR and did not break it so I re-entered. However, there was an ADX magenta peak coming in on the 12 minute that I failed to see. I exited that trade when the ATR flipped from red to blue resulting in a 12 point loss.
The final trade setup came off the 3 minute, again. This time price was at the congestion dots but could not break through them. This indicated, to me, that more likely than not, price would not test the 12 minute ATR. I re-entered to the short side. When price made a higher low after testing the ATR on the 3 minute, I exited with 36 points per contract.
Trading European session has been much smoother this week for trading. Typically, during low report weeks, we have very smooth movements, but that has not necessarily been the case during the US session this week. I have found the US Session to be quite the contrarian this week. If the charts said up, it went down. If the charts indicated down, it went up. Such is the case for traders and we have to remember that the markets will do what the markets want – period. However, because I use a low risk methodology, it is very easy to recoup losses when the patterns hold as they should. And that is what trading is all about.