When The Trend Is Not Your Friend
There's something to be said for the idea that ATR is more important than trend direction for intraday trading.
This chart shows how this can happen.
Overall the trend is up. It has pullbacks here and there but whether the larger trend is pointed up or down the big range days are at lower prices and when price pushes up to expand the overall range higher the daily ATR drops.
This means that just because the trend is headed upward you might want to avoid daytrading at all. Even trading long can be dangerous when the range is so compressed.
There are lots of big green large range days down in the pullback areas.
The ES has not been triggering on my scripts hardly at all and I was wondering why since you'd think with all time high prices it would be a field day.
This shows why and I'm going to be adjusting things to find where the high expected ATR days are likely to be rather than finding where it has broken from the value area.