Waiting on trade setups can be torture for any trader. All week the markets have been slow and non-trending during the trading room. And, all week, I have stressed the importance of going with a trend — when it is trending. But how can we expect the markets to trend when there is Fed Announcements, the ECB rate announcement, ECB press conference and the list went on and on. Instead of fighting the markets during this time, I simply stand back.
Waiting on Trade Setups – Let the Markets Come to You
I also mentioned in the live trading room, that I would trade on Friday after 5 am ET and then after 10am ET, if a trade presented itself.
This morning we had two trades on the Euro, one on the beginners chart and one using multiple timeframes.
Using the Beginner’s Chart, an entry was identified after the ADX made a magenta peak, price pulled back to the ATR, on diverging volume and hit the yellow line on the Easy Money indicator.
Profit on this trade was 84 ticks, while only risking 7 ticks per contract.
And, if you were using multiple time frames for entry, specifically the the 3 minute chart with confirmation on the higher time frames, the profit was 96 ticks, while risking 8 ticks per contract.
The difference this morning was that the markets were clearly trending. The ADX was bright blue and increasing on both the beginners charts and the charts using multiple time frames. The RSI clearly showed momentum to the upside. In other words, all the indicators were in alignment on all my time frames.
Of course, since I let the trade come to me, I didn’t spend my week fighting the markets between the market reports. And, since I wasn’t trying to force a trade, I had no previous losses and, therefore, added the full 96 ticks to my account. That is why it is critical to plan your schedule and know when the markets are more likely to trend.