Trading USDJPY for 78 pips after a retracement to the 180 minute chart today, April 20, 2016.
Trading USDJPY Charts
The 180 minute chart showed that price was at the TradersHelpDesk Trend ATR (average true range stop) at around 5am this morning. The TradersHelpDesk Directional Volume, which is available for TradeStation, Multicharts, and NinjaTrader, indicated a divergence between sellers and price. Looking at the higher timeframes there was no resistance until price approached the TradersHelpDesk Congestion Dot, which is included in the Trend ATR indicator for TradeStation, Multicharts, and NinjaTrader, on the 720 minute chart at 110.187 or the TradersHelpDesk ATR on the 1440 at 109.98. A long was placed with entry at 108.98.
By 1:30 pm, price was at 109.76. The TradersHelpDesk ADX indicator, which is available for TradeStation, Multicharts, and NinjaTrader, showed the market as being overbought on the 12 minute and price was within 20 pips of the 1440 ATR stop. Time to lock in profits. Exit was executed at 109.76
Why choose the 180 minute chart this morning? Because price has been moving slower than normal and the Market Guides and Volatility Analysis have identified that we are moving into the second slowest quarter of the year. Trying to focus on these lower timeframes result in lower risk but more losses as there is just too much noise on them. Instead, I bump it up and stay in the trade longer.
Here is the 180 minute chart with the selling divergence market and entry bar marked.
Since I trade with Oanda, here is the screenshot that captures the entry and exit (small triangles). Since the triangles are small, I added the horizontal lines to easily identify where the entry and exit was.