After having arrived to late on a trade, John Paul demonstrates why you should let missed opportunities and losing trades roll right off your back. John places a 10 contract E-mini order at 1170.25. After getting filled, the profit target is set for two points. He’s then filled with an accumulated total of 5 E-mini points for the day using the Atlas Line alone. There were plenty of other day trading strategies that could have been used that weren’t recorded. This is the benefit of attending a trading school – being equipped with many price action techniques for any type of chart. These results are not out of your grasp. Day Trade to Win offers a six month Atlas Line trial where you can take these Strength and Pullback trades on the E-mini and other markets just like in the videos.
Yesterday, the E-Mini unexpectedly fell quite a few points. In the video below, you can see the huge move down as indicated by the large red candle. With two consecutive closing bars below the Atlas Line, the Atlas Line generated a Dbl Bar Short signal at 1151.75. If you were using the Atlas Line and took this trade, it would have worked in your favor all day (with the exception of price starting to intersect the Atlas Line near market close). With price well below the Atlas Line, we know to stick with Short trades. There are a few trade types that can be used based on the Atlas Line: the Pullback Trade and the Strength Trade. These help in recognizing profit opportunities as the market flexes back and forth under a general trend. John Paul, day trading coach from Day Trade to Win can easily point out three pullback trades. Recognition of these setups is taught in the live training that’s included with purchase of the Atlas Line.
Using the Atlas Line software from Day Trade to Win, John Paul trade with a ive account and goes for 6.25 points on the E-Mini. Trading five contracts (order quantity in Ninjatrader) for 6.25 points is equivalent to $1562.50, providing the trade works out in his favor. Using the ATR, he notices that the target may be a bit extreme so he reduces it to 4.25 (a safer target based on what the ATR can allow). In case you’re not familiar with NinjaTrader, the green line indicates the profit target. The orange line indicates what the current profit would be (current price position). After the successful 4.25 points, he realizes that the original setting of 6.25 would have worked in his favor. Remember, Day Trade to Win focuses on price action and limits the risk of trades through strategic stop and profit placement. 4.25 points is still more than most traders can hope for on days with such volatility.
If you were trading the Emini today, hopefully you got in for the long haul or used a strategy that could deal with the chaotic movement. Those of you using NinjaTrader’s DOM could see how rapidly price was dropped. At times, price fluctuated four points in less than a second. In recent months, it was taking over an hour for price to climb or fall four points. The SP credit rating has truly affected how traders are perceiving the economy.
Here’s an example of how the Atlas Line from Day Trade to Win handles volatile days. John Paul, day trading coach, acknowledges that some days are just not meant for trading. He explains how the ATR can be used to determine the best time for trading and how it can be used in combination with the price action trading tool, the Atlas Line.
Since our last Emini video post, the Emini has continued to fall due to economic uncertainty. The average true range (ATR) has climbed considerably, averaging above the five point range we like to trade. For quite some time, the Emini lacked volatility and now we have too much. The two videos below show the last two days, which were more tradeable in terms of the ATR value.
If you are using NinjaTrader, the ATR indicator is included. To add it to your chart, right click the chart and select Indicators. Navigate through the list until you see ATR then double click to add it to the selection box. Confirm the selection by clicking Ok. Remember to be cautious during this time. Your typical stops and profits can be reached too quickly and too unpredictably with ATR above 5.
The Atlas Line provides traders with long and short order signals, determines the expected direction of price with a plotted angled line, and has a few custom trade setups that compliment the tool. John Paul, founder of Day Trade to Win and creator of the Atlas Line, coaches traders on how to use the trading tool free with purchase in the form of a webinar. He also conducts presentations whereby traders can request the Atlas Line to be display on markets of their choosing. John Paul’s favorite markets to trade with the Atlas Line are the Emini, Euro, CAD, Russell, AUD and other currencies and futures.
The video above showcases trades taken August 1 and August 2 (last two days) in which the Atlas Line successfully called out multiple short trades that were worth quite a bit of money with price tanking. The Atlas Line caught the initial short moves which appeared shortly after market open, but the “indicator” didn’t stop there. Multiple pullback trades occurred, which further confirmed profitable short trades. Did you know which side of the market to be on? Did the markets make or break your account the last few days?