Trading the Euro Currency Futures using the 180 minute chart produced a great trade that resulted in 3 profits targets being achieved. The direction of the Euro was determined by the 180 minute chart this morning, which had an ADX magenta peak. The ATR was about eighty ticks away, which gave plenty of room for profits. On the three minute chart, we had an ADX magenta peak that indicated price would pull back to the ATR. The 12 minute also had a magenta peak but I was looking to the volume on the 3 minute chart to indicate if sellers were interested. They were not because instead of increasing as price approached the ATR, sellers were decreasing. I entered the trade and took profits at Clipper 1, Clipper 2 and Clipper 3.
Trading the Euro Currency Futures
The key to understanding the upward movement was the 180 minute chart. First, there was divergence on the lows, indicating that a test for buyers was warranted. Then the ADX magenta peak came in. This scenario usually results in large movements and there will be overbought conditions on the lower timeframes because the movement is being dictated by the higher timeframe. I could have let the ADX magenta peak on the 12 minute scare me out of the trade. However, by reading the volume and allowing it to lead me, I was able to profit from the movement.
These techniques are taught at the upcoming trading Seminar. Additionally, at the trading Seminar, we will learn to project the best time to look for a trade — based on what our higher timeframes are doing, as well. This means that if we anticipate a trade coming in at 3am, then we will be trading live at 3 am. For the first time, we will be showing you how to use the THD indicators and volume to project, in advance, when these trades will come in. As clients learned at the recent Las Vegas seminar, we do not have to sit and stare at the computer screen all day — instead, we look to the higher timeframes to dictate what time the trade will come in.