Trading the DAX futures or binary options produces profits when using the Average True Range Stop with the ADX magenta peaks, using exactly the same setup. Of course, a trader could always do both since the binary options limit your risk.
This morning there were several trade setups on the DAX for either the futures or the binary options. The 45 minute had a very strong divergence signal indicating that buyers were not interested in taking price up. The 12 minute had a magenta peak and a retracement to the Trend ATR (Average True Range stop). On the retracement, there was buyers divergence.
Trading the DAX Futures
On the 3 minute chart, there were two entries, both at the Trend ATR stop on diverging volume (points A and B).
Notice how at Point A, we are in a congestion zone, the ADX made a magenta peak, price retraced back to the ATR on diverging volume. Then at Point B, the ADX made a magenta peak, price retraced back to the ATR on diverging volume. In other words, the ADX alerted us that the retracement was coming and to watch the volume.