Trading futures with TradersHelpDesk indicators offers both new traders and experienced traders clear entry signals using the TradersHelpDesk’s Trend ATR, Directional Volume, ADX, and new Stochastics with Support and Resistance.

Trading Futures with TradersHelpDesk Indicators – Examples

Before looking at examples, let me explain.  The TradersHelpDesk indicators are designed for both new traders and experienced traders.  New traders simply look to the Trend ATR for entries.  Blue dots indicate long entries and red dots indicate short entries.  For more experienced traders, they combine these entry points with divergence in volume and on the Stochastics.  Sometimes the Stochastic indicates that price is doing exactly what it should be doing and, other times, it shows that price is going in one direction and the oscillator is going in a different direction (diverging).  The ADX is used to identify when the pullbacks to the ATR are expected (magenta dot on the ADX indicator).

Understanding the TradersHelpDesk Indicators

If you are trading futures with TradersHelpDesk indicators, it is a must to understand the indicators.  Let’s identify each of the indicators:

  • Trend ATR – actually turns the price bars blue for uptrend and red for downtrend; plus, it identifies when the markets are in congestion by plotting both the ATR (plus sign) with a white dot.  During periods of congestion (both the white dot and the ATR are plotted), traders should only take entries at the dot or the plus sign.  Additionally, the trader has the option to use a western style price bar (Open, High, Low and Close) or a Candlestick and to adjust when to be alerted when price is close enough to the ATR to begin looking for a trade.  Both email, visual and audio alerts are designed for the TradeStation RadarScreen, Multicharts Scanner and NinjaTrader Market Analyzer.  While most of the charts show the candlestick formation simply because they are easier to read, the Western Style Price Bars with the Trend ATR is shown below.

Trend ATR on Western Style Price Bar

  • The red dots at the total of the price bar indicates the highest high in the series.  The blue dots on the bottom of the price indicate the lowest low in a series.  The dots are extended until a new high or low is made (a magenta dot will appear as long as price is making higher highs or lower lows in the series measured).
  • Directional Volume – Identifies all the buyers and sellers for each price bar.  Anything plotted above the zero line represents buyers and anything below the zero line represents sellers.  Then there is a small hash mark (” – “) which identifies who won the bar at the close.   The hash mark, when combined with the price bar formation, can indicate a very powerful move IF the hash market flips to the opposite side and the price bar formation confirms this move (also known as a momentum shift).  For example, if a blue volume bar (which indicates a high) and the hash market flips to below zero, with a price bar that closes on the low, this confirms that sellers stepped in and took control.
  • ADX – The line color represents which Directional Movement Index is dominant (positive is blue and negative is red).  Whenever the histogram bars are magenta, then the market should be trending.  If a magenta dot appears on the line, traders should anticipate a retracement back to the Trend ATR (entry points).
  • Stochastic with Support and Resistance – The Stochastic has been smoothed to prevent many false divergences.  The blue dots indicate the high of the Stochastic and the red dots indicate the low of the Stochastics.  When you combine this with the Trend SR dots on price, you can simply connect the lines for measuring divergences.  The Trend SR is included in the purchase of the Stochastic indicator.

Understanding Divergence

Divergence is simply when price goes in one direction and a directional indicator goes in the opposite direction.  For example, selling divergence is when price is making lows but the Directional Volume isn’t.  Or when price is making new highs and the Stochastic is not.  Here are the basics for divergence:

  • Uptrend
    • Higher Highs but lower highs in volume or stochastic
    • Lower Highs but higher highs in volume or stochastic
  • Downtrend
    • Lower Lows but higher lows in volume or stochastic
    • Higher Lows but lower lows in volume or stochastic
  • Confirmation Movements
    • Higher Highs and higher highs in volume or stochastic
    • Lower Lows and lower lows in volume or stochastic

Applying the Concepts When Trading Futures With the TradersHelpDesk Indicators

All of the charts below are marked so you can compare to decipher if there was divergence or confirmation.  Let’s look at one and then you should be able to do the remaining ones from Friday, November 11th.

The 12-minute Nasdaq chart shows that at Point A, price has returned to the same low and an entry dot is generated.  Selling volume (portion below the zero line) should be increasing but it is not (divergence).  The ADX has the magenta dots plotted so the trader knew to expect these retracements.  With price making equal lows, the Stochastic should follow suite but it doesn’t.  Instead, it makes a lower low (divergence).  An upmove should be anticipated.

Point B forms after a new entry dot is plotted.  Price is making higher lows but the Stochastic again is making lower lows (divergence).  Additionally, the volume indicator shows that sellers are decreasing (they should be increasing as the low at Point B was lower than the low after the blue entry dot), which indicates that price should go up because sellers weakened.

Trading Futures with TradersHelpDesk Indicators

Now see if you walk through the following charts using the same concepts.

Trading YM

Trading Gold

Again, for new traders with no experience with trading futures or in reading divergence, sticking with the Trend ATR initially while trying to learn how to read price bars and market action is the best plan.  For traders who have much more experience, then adding the divergence filters out potential losing trades (not all because every trader will have losing trades, it is simply part of what we do).  Additionally, for new traders I recommend the binaries because precision is not essential.  However, for trading futures or forex, precision is vital as they are leveraged instruments.

Different Traders Require Different Solutions – Multiple Trading Packages

Trading futures with TradersHelpDesk indicators, results in both new traders and experienced traders be able to identify clear entry signals using the TradersHelpDesk’s Trend ATR, Directional Volume, ADX, and new Stochastics with Support and Resistance.  We also offer the indicators individually or in different trading packages.

For example, the Create Your Own Package (which is on special for $795) allows traders to choose any three indicators to get started.  The package does include both the Scanner type indicator (RadarScreen, Scanner or Market Analyzer) and charting indicator, workspaces or templates, documentation, ongoing support via email, phone or online, and upgrades for one year.

The Silver Trading Package (which is on special for $1295) contains all the indicators that are currently offered for both Scanner type programs and charting, documentation, online training videos, ongoing support via Skype, email, phone and online, workspaces or templates, and upgrades for one year.

The Diamond Package (which is on special for $1695) includes everything from the Silver Trading Package plus a two-day seminar with Gail in Greensboro, NC.  The seminar focuses on trading futures, forex, and binary options using the TradersHelpDesk indicators, risk management and how to overcome the trading psychology issues that all traders must face and conquer to be successful.