Trading Forex and Futures with the Directional Volume indicator, ADX and Average True Range Stop Loss indicator nets profits on Gold, Nasdaq and the USDCAD forex pair.  Entry criteria is always the same:

  • Price is at the Average True Range Stop Loss or Congestion Dot
  • Directional Volume indicator identifies volume divergence

Trading Forex and Futures with the Directional Volume indicator

Using this methodology, on Gold, my expectation was that it would go up.  A congestion area had formed and there was divergence on the selling side (confirmed with the 12 minute chart).  I entered the trade at 1103.7 with the expectation that price would break thru the congestion area at 1107.6.  However, it did not so I scratched the trade with exits at 1106.3.

Trading Forex and Futures with the Directional Volume indicator

Trading Futures – Gold

On the USDCAD, the ADX magenta peak came in so I expected a retracement to the Average True Range Stop on the 720 and possibly the 1440.  I entered the trade at 1.2984.  However, volume on the 45 minute indicated that a retracement was likely to the Average True Range Stop so I exited at 1.2937.  The trade resulted in a 46.9 pip gain.

Trading Forex - USDCAD

Trading Forex – USDCAD

Then on the Nasdaq, the ADX magenta peaks started rolling in so I shorted at 4679 using the 12 minute chart, price was at the congestion dot (with diverging volume identified on the Directional Volume indicator).  I exited at 4661 which was the average true range stop on the 180 minute chart.  Then price retraced back to the Average True Range stop on the 12 minute with one single blue bar so I went down to the 3 minute for another entry at 4675.  As price reaches down to the 180 minute average true range stop, sellers are declining so I exit again at 4661.  I explain it in the video below.

 

 

Trading Futures - Nasdaq

 

Nasdaq Trade

Trading Futures & Forex Video