Did you trade the huge afternoon move down today? In the E-mini S&P 500, we saw it drop -19 points over 19 candles.
The conventional explanation for the big move is that President Trump announced stimulus discussion would resume after the election (i.e. don’t expect a stimulus this month). I know, I know. Let’s keep the politics aside and focus on the price action…
…As they say, a picture is worth a thousand words, or maybe a thousand dollars, if you were following these signals with the right number of contracts.
Now, I suggest that you look very carefully at the chart image below. We’re using two Atlas Lines here. The blue Atlas Line (the one on top) is using the traditional 9:30 a.m. market open setting. The magenta Atlas Line is using the taught but less commonly used 12:00 p.m. market open setting (that typically generates more afternoon signals).
If you look carefully, do you see how price bounces right off the blue Atlas Line! It’s almost as if the Atlas Line can be used as a forward-looking predicative tool. I bring this bounce up because we see how price, time and time again, seems to “react” to the Atlas Line. Remember, the Atlas Line “line” extends at the same angle throughout the day – it doesn’t change once it begins plotting soon after the given market open time.
Note there is no Atlas Line signal generated from that bounce. The Atlas Line Short signal that you see is the result of the second (12:00 p.m.) Atlas Line.
The two other short signals come from the Trade Scalper software. These signals were also good, but scalping trades go for smaller amounts than the Atlas Line trades.
Wow, what a day this was. Things may be getting more political day by day, so we may in for more wild days. Be sure you’re using trading methods that you feel comfortable with! We have a new 8-Week Group Mentorship class that begins Oct. 15, 2020 that includes all courses and software with Lifetime licenses. We’d like to have you in the class – click here for details.