These rules can be applied to any market, including the E-Mini S&P, futures and currencies:
1. Positive news doesn’t guarantee that market price will rise.
2. Negative news doesn’t guarantee that market price will fall.
3. Only act based upon the advice of a price action trading method, in this case, the Atlas Line.
John Paul from DayTradeToWin.com shows us why he went SHORT despite positive news that affected the E-Mini S&P market. On December 6, 2010 (late evening), Obama announced a tax cut extension, rallying the market during the night trading session. As the market started to come down from the rally, the Atlas Line produced a short order signal.
Now that we have entered the trade, how do we exit? In the video, John shows us how to use the ATR (Average True Range) to decide based on profit target. The greater the ATR (range), the greater the potential profit. The ATR NinjaTrader tool should be used to dictate your profits. Trade within the bounds of price action, not your emotions.