Built by Traders, for Traders

How We Find the Daily Direction

The goal of The 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’s why I’ve focused this post on providing the fundamentals of each indicator icon you will see on our time frame charts.

Continue reading to see what they represent and how you can use them in your daily trading setups…

Daily Timeframe Indicators

The daily timeframe allows us to see the overall direction for a futures market at a day-to-day level:

Daily Chart of S&P 500 Futures — Source: TradingView
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

The one-hour timeframe gives us an hourly snapshot of a market’s price movement. 

We use the one-hour timeframe chart to plan our entries…

Hourly Chart of S&P 500 Futures — Source: TradingView
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

Once you’ve got the daily direction down, consider checking this out…

My colleague and equities pro Ross Givens has come up with a brand new strategy that aims to deliver weekly gain opportunities without ever holding a single stock.

If you’re interested, check out the important P.S. below…

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more! 

Click here now to subscribe!

Keep on trading,

P.S. My colleague and expert stock trader Ross Givens just unveiled his brand new “rapid cash” strategy that is totally market neutral.

It doesn’t matter if a stock goes up or goes down… With this strategy, Ross can set up his trades to win in either direction.

If you want to learn exactly how this works, watch Ross’s on-demand and totally FREE broadcast right here.

The post How We Find the Daily Direction appeared first on Josh Daily Direction.

Leave a Reply

Your email address will not be published. Required fields are marked *