Welcome to our fourth episode in the How to Day Trade Using Price Action series!
In this episode, we will study supply and demand. This might look like a boring topic, but I disagree that it is boring. It’s actually a very vital topic, and you need to understand the laws of supply and demand in order to be trading successfully with price action. This is because supply and demand and the relationship between them is the foundation of all price action.
We shall try to make the subject a bit more fun to learn, with a few silly examples and funny pictures. I might even throw in a funny cat somewhere…
In the next video, we will take a look at how you can identify supply and demand in the markets by reading the charts like a pro.
Below, you’ll find a live recording from this morning’s Atlas Line webinar with founder of Day Trade to Win, John Paul. He shows that the price action methods he teaches are for real, as there is no mistaking a live, moving market. The E-Mini, Russell, Crude Light and Euro Currency markets each display the Atlas Line software, plotted and giving order signals in real time. The Atlas Line lets traders to know how and when to enter the market: either long or short and at what price. To exit trades, John teaches how to use the ATR (Average True Range) software provided with NinjaTrader. The ATR comes in similar forms for other platforms supported by the Atlas Line like TradeStation and eSignal. In the webinar that’s included with purchase, JP shows traders a few price action setups that accompany the Atlas Line.
Also, yesterday’s price action on the E-Mini market was great for trading. I’m sure you saw how the E-Mini was on the rise within the first 15 minutes and then steadily declined in price for the rest of the day. When the market falls so quickly, traders can expect to see similar behavior in the surround days. There’s no better time to buy the Atlas Line.
Knowing when to enter and exit, where to put your stops and where to expect price to be headed are hugely important when day trading. This is where the Atlas Line dominates over other day trading software and methods, providing a clear cut way to trade price action.
In this video, John Paul from DayTradeToWin.com enters a long trade using the Atlas Line and NinjaTrader. Before the long order, the Atlas Line produced a bunch of short order signals because price was below the Atlas Line. According to the ATR, John goes for a little less than two points to make sure he’s not over extending his account according to the current market conditions. Always trade according to what the ATR indicates (as taught in the Atlas Line webinar).
Why did John Paul take a long trade on the E-Mini S&P?
Using the Atlas Line is very easy and a great tool to day trade or scalp the markets. See this video of how John Paul demonstrates the Atlas Line in real-time. Along with a great setup in the morning, a Double Bar Short Signal was given by the Atlas Line at around 2:30 p.m. EST. Upon comparing the signal with the ATR (Average True Range), we knew in advance where the bottom was.
The Atlas Line is a line drawn on your day trading chart from the time the trading session starts, calculating odds using a proprietary formula. In the morning, three Bounce Long symbols appeared between 9:30 a.m. and 10:00 a.m., all advising to “go long.” Of course, these notifications occurred prior to the hike that began at around 10:30 a.m.
Then about halfway into the video, John Paul shows how the Atlas Line can be used in pre-market sessions. A Short signal is produced after-hours and shortly thereafter, price dropped a few points allowing for a pre-market profit.
John then rewinds the video again to show day trading the E-Mini activity on the 30th. A Long signal was generated that didn’t amount to that much, but check out what happens with the short signal at 1203.5…
John Paul has been teaching traders how to improve their day trading and you can trade like the pros.
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.
Scalp trade the markets using only price action as taught in the Trade Scalper course! The methods taught in the Trade Scalper course do not use indicators. The Trade Scalper methods can be used in ANY currrency or futures market, not just in the E-Mini S&P.
FREE LIVE TRAINING WEBINAR SESSIONS: Thursday, November 4th, 7:00 pm EST to 8:00 pm EST
Tuesday, November 9th, 7:00 pm EST to 8:00 pm EST
Thursday, November 11th, 7:00 pm EST to 8:00 pm EST
Scalp trading is less risky than other methods because each trade uses small movements compared to regular trading. The focus is consist profits.
The video, the narrator shows you how he scalps the E-Mini S&P for a couple of ticks on November 2, 2010. He goes for three ticks on each trade; no more, no less. He knows where to go long and short and what profits and stops to use in advance.
A good rule of thumb is to never use market orders when scalp trading due to slippage. Also, try not to move your stops and profit targets unless you are ready to exit the trade.
The upcoming webinars will be based on scalp trading the markets using price action. Live instruction is included with the Trade Scalper Program.
If we had to pick one day trading indicator, strategy or system that we can’t trade without, it would be the Atlas Line from DayTradeToWin.com. With the free upgrade for customers to NinjaTrader 7, we’ve been trading the overnight and regular E-Mini S&P session. Despite the low amount of volatility, the Atlas Line has been accurately plotting and predicting the direction of price. Most of the other indicators we use go haywire when there is little market activity. Since the Atlas Line is based on price and no other external data sources, traders can be confident with its accuracy.
Want to learn how to trade the E-Mini S&P? E-Mini Education offers the ability to attend a private, one-on-one lesson with professional day trader and instructor John Paul. For $297, the lesson will show you one exact price action method of trading, proven to bring in the profits! John Paul covers this and other price action trading fundamentals in this new webinar below: