Trading Nasdaq for 10 points off a trend entry at the ATR stop indicator on the 3 minute chart. Since we always focus on the higher timeframe and, in this case the higher timeframe (45 minute chart), shows an uptrend. This identifies that we should only be trading long positions with the trend of the higher timeframe.
Trading Nasdaq Entry
For entry, price has to test ATR stop indicator on the three minute and it did. As price was testing the ATR stop, we can look to the volume for clues as to whether the sellers will break through the stop or not. In this case, sellers decreased (showing volume divergence as it approached the ATR stop). The entry was at 4685 and exit was at 4695. The total risk was a maximum of fifteen ticks.
The trade produced a profit of ten points or forty ticks (there are four ticks to one point for the Nasdaq and each tick is worth five dollars). These simple entries, which are based on either the market trending or being overbought or oversold, use a low risk with a higher profit level to ensure that your winning dollars overcome any losing dollars.