In this video, Gail shows you techniques for using the THD Trend ATR and Stochastics to filter trades on a lower timeframe.  In these examples, trade signals from the 15 minute appear on the 5 minute and Gail goes through the trades to determine whether to enter (filtering) or when to exit if already in the trade.

Using the THD Trend ATR and Stochastics to Filter Trades or Minimize Losses

Gail Mercer, founder of TradersHelpDesk, shows you examples of using a 5 minute chart to filter trade signals from a 15 minute chart.  The ideal entry is when price is either at the ATR or the Congestion Dot and the Stochastics is overextended (she refers to it as a money trade).  However, if you do enter and see that price hesitates or fails to break through the ATR then you can also opt to exit early.

While you can use the Stochastics that is built-in to the Nadex charts, it is not the same as Gail’s Stochastics and you won’t be able to see when price fails to break either the ATR support or resistance.

The THD Trend ATR and Stochastics is available for Multicharts, NinjaTrader and TradeStation.