It’s Thursday, Daily Direction readers!
That means it’s time to review a key piece of my trading strategy.
When reading this newsletter, you’ll see several crucial indicators down the right-hand column if you’re following along with my Daily Direction newsletter. These simple symbols provide a brief overview of how our highlighted futures market is performing for the day.
The goal of Daily Direction is to give you the information you need to make winning trades. And the key to my technique is to keep things as straightforward as possible. That is why these indicators are so important when creating a trading strategy for the market.
I’ve focused this post on providing the fundamentals of each indicator icon to helping you understand what they represent and how you can use them in your daily trading setup.
Daily Timeframe Indicators
The daily timeframe allows us to see the overall direction for a futures market at a day-to-day level:
Green Up Arrow: Indicates that the overall direction for the daily timeframe is up. That means the price movement is currently positive. The market is making higher highs and higher lows. We can expect money-making opportunities in the long term.
Red Down Arrow: This means the general direction for the daily timeframe is down. We’re likely to hold off on making long-term trades as we wait for the market to pivot back toward a positive direction.
Hourly Timeframe Indicators
Green Up Arrow: The current short-term trend as revealed in the one-hour timeframe chart is up. The price of the market continues to track upward, giving us confidence that we can find opportunities to buy the market and make profitable trades.
Red Down Arrow: Our one-hour timeframe chart reveals that the short-term direction for the market is down. This could be due to a retracement (temporary price dip) or a total reversal in the market. This is when we should be cautious with our entry strategy.
The Bottom Line Indicators
Green Up U-turn: The market has U-turned from a previous sell-off/retracement and is preparing to make a bullish run into a buy zone. We should prepare our entry strategy and look for opportunities to buy the market.
Red Down U-Turn: Indicates the market has started a sell-off from a previous bullish rally and is headed down to a new low price. It’s best to wait and see how low the market will go before examining our buying options.
These indicators work best when combined with my full analysis in each of my Daily Direction articles, as they correspond with the market we’re currently following.
They allow you, the reader, to quickly assess the overall direction of the futures markets we trade without having to follow complicated charts and graphs. I hope this informative article helped you better understand how my newsletter works. Be sure to check out my other free resources on futures trading!
Keep On Trading,
Stay tuned for my next edition of Josh’s Daily Direction.