The January Effect has produced massive opportunities in recent months. Take a look:
• March, 2017: +18 to +40 points
• May, 2017: +18 to +30 points
• June, 2017: +17 to +24 points
What’s happening now, in July? You’ll have to watch this video to find out…
In this video, John Paul takes a look at how the January Effect has worked in 2017 thus far. He also makes a prediction for the rest of 2017. Because we’ve just passed the year’s halfway point, it’s a great time to pause and review.
Before we get into the details of this strategy, you may want to check with your broker and/or financial professional to see if you’re capable of holding big trades overnight and for multiple days. The longer you hold a trade, the bigger the risk.
Let’s review the basic January Effect rules. Open an E-mini S&P chart. If January for the given year closed higher than it opened, then the January Effect exists. John Paul believes that you can expect price to close higher for the year in December. As price moves toward the December high, you’ll most often see a slow upward trend with plenty of pullbacks. For long (buy) trades, wait for the highs to be broken by at least two to three points. Pullbacks may provide better trades. When price begins to drop (pull back), there’s a buying opportunity when price retraces back to the 50% level of the previous high. Use NinjaTrader’s Fibonacci tool to help find the exact 50% point. Even for these big moves, the ATR (Average True Range) can be used to find an appropriate profit target and stop loss.
Click here to see all of our courses. If you want to learn more about the January Effect and get ALL of our price action strategies in one complete package, join the next Mentorship class. This class begins Aug. 2, 2017. All courses and software with lifetime licenses are included. Training is twice a week with John Paul. Email support is included. Our support staff can even help you install the trading platform and the class materials. Click here for details.