Having an edge in the market is crucial to our day and swing trading. On this trade in the FTSE I had that edge by using the 4-hour time frame of the Pro-Trading System.
The system was green and starting to rise in momentum. If you think that a 4 hour chart could push the prices up over the next 8 or 12 hours, I want to be looking for long side trades only. Being on the right side of the momentum is what we call bias. The bias was up in this case, so we want to get long.
I never just get long because I think It’s going to go up. I want to work an entry on the smaller time frame and in this trade, it was the 15 minute chart. Small risk high reward. Once the Pro-Trading System gave a new green buy signal from a red neutral candlestick, I took the trade. The FTSE quickly moved into positive and now we just had to manage the profits.
Ending up with £744 profit in the morning session meant we had made our day’s money nice and early.