Price Action Trading Locks in +4 Points

Purchase the Atlas Line and get the same signals!

Here’s a new video. We include the Atlas Line and ATO 2 to a real-time chart. There’s an Atlas Line short sign at 3114.25. For this situation, we need to get in at that price or better. Abstain from pursuing the market excessively far as that will hurt your profit potential. The profit target for this E-mini trade was 2.5 points (10 ticks). The explanation? That is the thing that the ATR (with a period setting of 4) says we can expect dependent on current market conditions.

At around 2:05, you can perceive how price almost closed on the opposite side of the Atlas Line. On the off chance that that happened, we would be out at a loss, as we must follow the rules. Luckily, soon after, price takes off towards the profit target. Time-based, prove-it, and catastrophic stop are three main stop strategies you can use with this software/method. If your profit target is not hit, you take whatever stop comes first. This can mean a smaller profit, breakeven, or a small loss all the way up to the catastrophic stop (approx. double the ATR value). The idea is that hopefully the profit target is hit more often than not along with the lesser stop losses. When trading, you should always use a stop loss as a safety net based on reasonable risk levels for your account, finances, and recent trading conditions.

At 5:25 in the video, an Atlas Line Long trade happens; coming about because of two back to back candles closing above the Atlas Line (dashed white line in this case). Once more, this trade is based on real-time ATR conditions (about 2.25 points for the profit target). By the way, by configuring an ATM Strategy, you can predefine profit target and stop loss values to save you time in the heat of the moment.

Atlas Line Review for U.S. and International Traders

Here’s a quick and painless video reviewing the Atlas Line signals. Everybody utilizing the Atlas Line today with the E-mini S&P 500 market got similar signals. This is true regardless of the type of Atlas Line license you have: 6-Month or Lifetime. The principal Atlas Line trade was worth around +2.5 points, nonetheless, on the off chance that you didn’t get out at profit, the time-based stop ought to have gotten you out at break-even.

The subsequent trade is a short with a 3.5 profit target. That is where the MIT (Market If Touched) request is put. As per the rules, the biggest hazard here (cataclysmic stop) is around 5 points. Price has to touch or go through the profit target. The market works on a first-come, first-served basis.

While considering your profits or lack of it, make sure to include broker fees (commissions) in your estimations. You can utilize NinjaTrader’s Trade Performance feature (accessible via NinjaTrader Control Center > New > Trade Performance) to create a performance report. In the Trade Performance window, determine “from” and “to” dates and click Generate. This is an extraordinary method to monitor both live and simulated trading results.

Want to learn all of our methods in eight brief weeks? Skirt ahead on the learning curve by enrolling in our eight-week Group Mentorship Program. The following class starts soon. It’s the most cost-effective way to learn everything in a short period. Some special techniques such as the Roadmap are only taught during Mentorship.

New Group Mentorship Class Starts soon

New Group Mentorship ClassA new Group Mentorship class begins soon.

Two months of live training will show you all that you have to know to effectively trade futures and currencies. All courses and software are incorporated with full, non-lapsing licenses. This new session has classes twice every week.

We anticipate that this new session should fill up rapidly. It’s a good idea to save your seat as quickly as time permits.

Click here to submit your $500 deposit. This deposit secures your seat and provides you with the first week’s materials ahead of time. You’ll be able to receive the ATO 2 course and software for NinjaTrader right away!

Here is what’s included:
• Live coaching
• Atlas Line® software
• Roadmap method
• Blueprint method (as taught in Power Price Action)
• X-5 method (as taught in the Floor Trader Secrets Manual)
• At the Open 2 (ATO 2) Course
• Trade Scalper Course
• Price Action Scalping Course
• ABC Pattern
• How to Filter Trades
• How to Trade the News
• How to Set Up Your Charts
• How Manipulation Works

…plus much more!

See real Mentorship Program reviews written by students

3 Ways to Enter the Market (Webinar Video)

Were you able to join the live trading webinar? Numerous dealers sat in and watched the sign happen continuously. John Paul broadly expounds and responds to inquiries from the audience. Please watch the replay below. The online course is new, having happened recently. The introduction starts with John Paul giving a general clarification of the business sectors.

Highlights from Part 1:

Part 1 – In the event that you missed the live online course Friday morning here is your opportunity to review the trades taken place, the inquiries and answers given, and the clarifications for each exchange taken in the online webinar was over 60 minutes, and separated into three sections.
Part 1 Covered
*Order types
*Phantom orders
*Trade Scalper Live Trades Taken
*Questions and Answers

  • Part 2 –

Part 2 Covered –
*Order types
*Phantom orders
*Atlas Line Live Trade
*Trade Scalper Live Trades Taken * Filtering Trades * Q & A

Real-time Price Signals: Win, Lose, or Draw

Do you want to know what’s missing from your trading configuration? You may possibly have the right platform, but do you have the right technique? In this video, we are using the Atlas Line and ATO 2 together on a 5-minute chart. Using these two indicators (see our courses/software page), we can look for confirmation. For instance, this video’s two long (buy) signals are what we call confirmation. Will the trade be a winner? Or will it not?

Every one of our trading methods are focused on price action. And that means we consider the immediate price activity as the main indicator of what we should do in a given moment. Many traditional indicators however, do not take this approach. You may have heard of stochastics, MACD, or moving averages. Often times, these approaches use what we call “old” data and may increase unnecessary risk or are inaccurate methods.

Take a look at all of the good Trade Scalper signals. For that method, we use a 2 Range chart, which is why the candles look a bit different. This at about 2:30 in the video.

Surely, you could purchase the ATO 2, Trade Scalper, and Atlas Line all with Lifetime licenses separately. However, for that amount and all you get with the 8-week all-inclusive Mentorship Program, Mentorship is a better deal by far. For instance, with Mentorship, you also get the Roadmap.  And theRoadmap is typically never sold separately. Other exclusive methods are reserved for Mentorship as well.

Join the next Mentorship Class. Click here to enroll or learn more.

Trading Results – Four Days of Price Action System

The last few days using the Atlas Line have been quite profitable. The signals have been nearly-dead on. We’re not sure why John Paul uses the Bounce signals, as many of his other videos mention turning this feature off. Regardless, the Long and Shorts were very accurate. Using the NinjaTrader platform, John Paul scrolls through the most recent four days.

Basically, the rules of the Atlas Line are as follows:

When two closes occur above the plotted line, go long (a Long signal is also produced on the chart)
When two closes occur below the plotted line, go short (a Short signal is also produced on the chart)

Stay in the trade until one of the following occurs:

You make profit based on the ATR rules (use a period of four for the ATR)
You hit a prove-it stop (price closes above or below the Atlas Line once in the opposite direction from which you entered)
You hit a time-based stop (20 minutes or four candles on a 5-min chart)
You hit a catastrophic stop (also based on ATR)

As you can see, the rules for entering and exiting a trade are straightforward. They’re taught in detail in the live training that’s included with purchase.
Additionally, you are taught how to use the S and P symbols that appear on the chart – indicating entries for additional Strength and Pullback trades.
You will of course have losing trades. Many days are profitable, some are break-even, and a few are losses. The recent trades page provides a history of recent trades taken by John Paul.

High Frequency Trading – Speed and Consequences

As explained in the above video, high frequency trading is the quick execution of buy and sell orders by a computer algorithm sent to a financial market. Keep your trading stable among the fast HFT world by watching more trading videos. Many of these high frequency orders are placed in bursts, hoping another algorithm will pick up and buy or sell based on the aggressiveness of another “robot.” This type of trading now accounts for around 70% of all orders processed in the major exchanges, such as the NYSE and CME. Computers with the most direct access have a distinct advantage over competing robots, as they know what price will be ahead of competitors. This created a race to build the fastest fiber optic line from Chicago to NYSE. The reason for this is the Chicago commodities markets influence the indices trading in the NYSE. The price of crude oil is related to the Exxon stock and vice-versa. One can easily understand why companies have spent millions trying to get the most direct route; whether blasting through a mountain or broadcasting through soon-to-be-built towers. In fact, professional trading firms have rented servers inside the exchanges themselves for the shortest physical distance possible. The NYSE has gone through the trouble to provide equal cable length to all servers inside its 20,000 square foot server room. This raises concern as trading has become a game of who can program the most profitable robot, disregarding the underlying economics. The flash crash of 2010 demonstrated a pitfall of high frequency trading – we still cannot account for the hundreds of billions lost (that have since rebounded) during the three minutes or so of the crash. Purportedly, one man’s algorithm (and sizable account) created a domino effect among the other algorithms, creating a vacuum that was only stopped by an emergency “breaker” flipped in the exchange. This mini-documentary has audio produced by Radiolab.

How to Forecast E-mini Price Direction in Advance

This is a more recent demonstration of one of the free trading techniques – the ABC Pattern mentioned on the DTTW trading videos page. You can trade this ABC strategy on stocks, commodities, forex, and other markets. On the given day, price was trending – heading in a steady direction. If you can know in advance with reasonable certainty if price is likely to head higher or lower at a given time, you can position yourself to make profit. The ABC pattern splits the day into three segments – morning (A), early afternoon (B) and late afternoon (C). By referencing what price did in the A part of the day, you can get an idea of what will occur in the B part of the day. The same holds true for B and C. Each part has its own characteristics. At market open in the A part (9:30 a.m. to 12:00 p.m.), automated systems, swing traders and large financial institutions create volatility. In part B (12:00 p.m. to 2:30 p.m.), have an expectation that the market will slow down. At the C part of the day (2:30 p.m. to 4:30 p.m.), expect a late day rally or sell-off. Watch the video so you know how to draw the breakout lines at the correct price points – lowest low and highest high in A followed by two consecutive closes above or below the range you’ve defined in A. However, this breakout is not likely to happen, as B is less active. Whipsaw price activity – back and forth movement, is more likely to occur. Watch the video for the rules of trading section C, as the rallying or sell-off will likely add volatility / tradability back into the picture.

Predict 2013 E-Mini Trading Using January Effect

Ever heard of the January Effect? At Day Trade to Win, John Paul describes it as an accurate way to determine if price will be up or down by the end of the year compared to its price at the end of January of the same year. Sounds complicated? Watch the video. If you take a look at January, 2013, you will notice that price closed higher at the end of the month. January was an up month. This will also hold true for the entire year. At the end of December 2013, John Paul claims price will be higher than the closing January 2013 price. Now, there will be pullbacks along the way. When price drops to estimated bottom levels throughout the year, professional traders will buy the market expecting the overall trend to be profitable. This January Effect is known among the professional trading community. In 2012, price followed the January Effect. Although you may find a few years where the January Effect does not hold up, overall you will see a distinct trend – one that hedge funds, high frequency algorithms, and financial institutions will keep in mind. For the average retail trader, you likely won’t be holding positions long enough for the January Effect to matter. At Day Trade to Win, they focus on smaller time frames. The longest they’ll hold a trade for is typically 20 minutes or four bars on a five minute chart. In most cases, the profit target will be hit first, or if the trade goes against you, the prove-it stop. Trading dynamically using price action is important – it’s adaptive.

Going Short on Live E-Mini Trade

John Paul from Day Trade to Win starts this video with a Short Trade using the Atlas Line software. How much profit and stop do you use for each trade? The first trade was good for one point, based on the ATR which was also near a point. The current trade’s profit target is 1.25 points. The stop is around 2.5 points. There are three stop strategies in mind that we went over in the last video. With the ATR hovering above one point, we know the market is worth trading. When you can look at nothing but price and decide to get in and out, you are trading using price action. It’s the most effective and easiest type of trading to learn. Everything you need is provided right in front of you on the chart. There is no guessing – it’s objective. The best time to trade is in the morning starting at 9:30 a.m. US/Eastern until about noon. However, you’ve probably seen many videos with the Atlas Line trading far beyond the open outcry session. Why 9:30 a.m.? When the CME opens, there are millions of orders placed by high frequency trading algorithms, hedge funds, professional and retail traders. In addition, financial news events, press releases and the U.S. daytime infrastructure really comes online during this period. As long as the ATR (with a period of four) remains between two and four points, you can bet the trading conditions are favorable. All you need at this point is an effective day trading strategy. There are many day trading courses at Day Trade to Win that focus on price action.