Monday, January 16, 2017 is Martin Luther King Jr. Day, a federal holiday. The CME equity product markets (such as the E-mini S&P) will be close early on Jan. 16 at 1:00 p.m. will resume at 6:00 p.m. These times are US/Eastern (UTC-5, New York Time). Expect normal trading hours on days surrounding the holiday. The next trading holiday is President’s Day in mid-February.
Click here to see the official CME holiday hours. To display all of the closures, the CME is now using a new Excel format. Some traders may find this more difficult to read than the condensed PDF statements the CME once released. As always, you can comment here or send our support team an email to clarify your understanding.
With Mentorship, you’ll get a lifetime Atlas Line license along with a full NinjaTrader environment for practicing. All of our other courses and software are included, too (about 10 total strategies). Click here to find out more.
Here’s an E-mini trade from January 5, 2017 using the Atlas Line. There’s a Dbl Bar Short signal at 2264. This is telling you to sell the market and the price you hope to get in at. This type of signal always appears when two bars plot below the Atlas Line. If there were two consecutive bars above, a Dbl Bar Long signal would have appeared. When John Paul placed his live trade, he got in a tick above at 2264.25. This value is indicated on the DOM in a gold / light brown color. The profit target and stop loss need to be relative to current market conditions. That means every trade’s profit target and stop should be reasonably reachable. A very small stop loss should be avoided because it’s easy to get stopped out during normal fluctuations while waiting for the profit target to get hit. Generally, think of using a larger profit target when the market is faster and a smaller one during slower activity. For this trade, real-time market conditions dictated the the profit target to be 2263. By calculating the difference between the entry and the profit target, if the profit target is hit, the trade is worth 1.25 points. In the E-mini, remember that each point is worth $50 and each tick is worth $12.5. So if you’re trading one contract, at profit this trade would be worth $62.5. That doesn’t seem like much, but that’s a good amount considering the Atlas Line can produce multiple opportunities every date and the longest you’ll be in a trade is 20 min. That said, broker commission fees and other possible trading fees may apply.
Here are two recent charts of Atlas Line trades. As you can see, for January 6, there were many opportunities even though the angle of the line was rather flat. These additional traders were Strength and Pullback trades. The exact rules for finding these trades and how to take them are covered during the live training. In short, they provide signals that continue in the overall direction of the Atlas Line. On Jan. 6, the candles were above the line, so the bias was long, hence the long Strengths and Pullbacks. This was one of those trending mornings that only starting to chop around 1:00 p.m. EST. This is why we often say the morning is the best time to trade. Like most of our strategies, the Atlas Line is meant to work on a 5-min chart.
On January 5, 2017, the Atlas Line provided decent Short signals despite the chop. All of the Pullback and Strength trades are on the short side because price was below the Atlas Line. The signals you see here are the exact same that you would see on your chart. After purchasing the Atlas Line, all you have to do is follow the simple licensing steps, then add the Atlas Line to your chart. If you live in a time zone other than US/Eastern, you can customize the MarketOpen time to when the E-mini opens in your local time zone. From there, the signals will automatically appear. It’s then up to you to trade them based on the rules you’re taught in the video and the live training.
Click here to find out more about the Atlas Line.
Here’s a recording of today’s webinar from January 3, 2017. In this hour-long presentation, John Paul (founder of DayTradeToWin.com) teaches how to understand the day as a whole using basic charts and price action. Free educational tips are offered as well as the Atlas Line and Trade Scalper plotting live. See below for the times at which these strategies are shown.
He estimates the market is choppy 75% of the time. Knowing if a trend is present is important when deciding to employ counter-trend trading, trailing a stop, support and resistance, and other techniques. If the day is in fact trending, you’ll need to trade differently to make the most of it. Market open time for the E-mini S&P is 9:30 a.m. EST. Although technically this is not the open time, this is the time when the market becomes active. The first 2.5 hours of the day from 9:30 a.m. to noon EST, is considered the Part A of the day. Using the ABC pattern, using the highs and lows of the A period, you can look for a breakout in Part B. Part B is simply the next 2.5 hours (noon to 2:30 p.m. EST). If there is a breakout, that does not mean it will continue. Follow the rules to look for two consecutive closing candles outside the range. This can be used as one of the factors to decide if it’s a trending day. Watch the video to see how to plot the A, B, and C sections through multiple recent days.
At about 21:45 in the video, take a look at the Atlas Line plotting live. There was a Long signal generated at 2249.75. The vertical alignment of the text signal is always aligned with the entry candle. The entry candle, in this instance, was two closes above the purple Atlas Line. This Long entry candle was at 9:55 a.m. There are multiple stop strategies that John Paul uses. The closer you enter in to the Atlas Line, the better. The prove-it stop is when the price closes below the Atlas Line. The time-based stop is four consecutive candles (about 20 min.). A catastrophic stop is meant to save you from unexpected, high volatility situations where price suddenly takes off. Click here for the Atlas Line
Around 36:50, take a look at the Trade Scalper software plotting live. This is the demonstration version, so it’s not as fully-featured as the version you’d get with purchase. For example, you won’t see any of the horizontal or vertical lines that help guide your trading. Each Trade Scalper signal appears as a Short or Dbl Wick short on the chart with an accompanying color triangle to indicate direction. The Trade Scalper is fully explained in the included course and accompanying live training. Click here for the Trade Scalper
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Here’s a recent Atlas Line trade taken by John Paul. The software produced a short signal at 2259 followed by a long signal at 2261.75. That first trade was a good one, as it reached the profit target. Limit orders are great, but market orders are sometimes preferred. Try to have no more than a tick of slippage. The order was filled at 2262, only a tick above the entry signal price. Remember to always have a stop loss in place to protect you from significant loss. Trading is risky, so only trade with money you can afford to lose. With the Atlas Line, John Paul uses multiple stop losses. When the conditions are met for any of these, he’s out of the trade. The stop strategies are explained in the live training session that’s included with purchase. Remember, when in a trade, don’t walk away from the chart! Keep an eye on it. Sometimes, price may touch your target and bounce off. Trade management is really important, as you can prevent big losses. Markets are constantly changing. That’s why the ATR (Average True Range) is used. John Paul uses it as a dynamic, real-time measurement of what price may be able to accomplish at a given moment. For this trade, the profit target of 2263.25 (+1.25) was hit within 15 minutes. By using the Atlas Line, you can get the same signals John Paul sees.
Christmas is coming up this week and New Year’s Day is right around the corner. As a reminder, take note of the following holiday market hours.
Christmas Trading Hours
• This Friday, Dec. 23, the markets close at the regular time.
• Christmas Eve is Saturday, Dec. 24 (the markets are normally closed on Saturdays)
• Christmas Day is Sunday, Dec. 25 (the markets remain closed)
• Next Monday, Dec. 26, Christmas Day is observed and the markets remain closed until 6:00 p.m. US/Eastern (UTC-5).
• The market continues with regular hours until New Year’s Day is Observed.
New Year’s 2017 Trading Hours
• On Friday, Dec. 30, the markets close at the regular time.
• New Year’s Eve is Saturday, Dec. 31 (the markets are normally closed on Saturdays)
• New Year’s Day is Sunday, Jan. 1, 2017 (the markets remain closed)
• On Monday, Jan 2, 2017, New Year’s Day is observed and the markets remain closed until 6:00 p.m. US/Eastern (UTC-5).
• The market continues with regular hours.
Note that Christmas Day and New Year’s Day both fall on a Sunday, therefore the observance is Monday.
We hope you and your family have a warm and happy holiday season!
Atlas Line E-mini S&P 500 chart on Dec. 15, 2016:
Our trading signals page shows signals generated by the Atlas Line software. Only signals from 9:30 a.m. to noon, US/Eastern are displayed.
On Dec. 13, 2016, the E-mini reached an all-time high of 2273 (2273.25 according to some references). The lowest price has reached in the last year is 1797. As John Paul mentioned in this recent webinar, this month is expected to provide many good breakout opportunities. Price climbs, pauses, and may continue climbing. This is known as the Stair Step pattern. The Stair Step can provide additional confirmation to long trades, such as the Atlas Line (see screenshot above). Holiday spending, the President-elect’s appointment of Wall Street-friendly leaders, and annual reports factor into this end of year rally. Will price break 2300? One thing is for certain – with intraday trading, the Atlas Line can find long (buying) opportunities in the market ahead of anticipated big moves. The Strength and Pullback trades can provide additional opportunities as the market continues to push upward.
E-mini S&P price during the last year:
Look how many times price continued to drive upward after a dip followed by breaking the previous high. If you can catch these opportunities and not get too greedy, you can find some excellent trades.
Atlas Line on Dec. 14, 2016:
On the trading signals page, you will see +10 as the total for Dec. 14 because signals beyond noon are not recorded. The Atlas Line will produce trades in the afternoon, but as with all the signals, it’s up to you to take them depending on market factors. John Paul fully teaches how to assess the market to determine its tradability. Remember, there are no performance guarantees and trading is risky and may have drastic financial consequences. That said, our goal is to help you become a better trader.
The Stair Step pattern looks like a typical, real-life stair case, only represented in candles. It’s easy to see after the fact, but the trick is to recognize the pattern while it’s occurring. This pattern often occurs the last week of the year, where price pushes, pauses, pushes, etc. Overall the Stair Step activity is usually slow, but the pattern persists throughout the week. At about 3:00 in, John Paul demonstrates the Step pattern, although the conditions are less than ideal. What works well with this strategy? The Atlas Line because it provides an estimate direction of market activity and provides signals as price pulls back while continuing in a specific direction. In fact, some of the steps match up with the Atlas Line’s pullback trades, shown as small “P” text signals on the chart. Strength Trades also match up. Vlad, a student who asked about the consistencies between the two methods, is a Mentorship student.
It’s best to avoid trading before the big holidays (Christmas Eve/Day and New Year’s Eve/Day. Unusual market activity, or very slow activity, may occur on Friday, Dec. 23 and Friday, Dec. 30, as the holidays occur over the weekend.
At around 9:00, check out the A, B and C parts of the day, as they apply to scalping. The ATR (Average True Range) really decides whether or not a trade is available during the B and C parts, because they tend to be slower. An exception is C’s late-day rallies / sell-offs and “squeeze” (when traders exit positions at market and volatility increases). Avoid the last 15 minutes of the session for this reason. Watch the price on the DOM begin to move rapidly. The same thing happens when there’s a news event – buyers and sellers seemingly enter at random. The only time John Paul does not use the ATR is on a tick chart for the Price Action Scalping method (taught in Mentorship).
At about 16:16, you can take a look at the Trade Scalper signals. Note this is not the full version of the software you’re seeing – these are just the signals. The guiding lines and levels are not shown. Many of the signals are reviewed, so you can really get an idea of what it’s like working with this scalping strategy.
Remember, you can get all of the trading strategies discusssed in this webinar (and many more) by attending the upcoming Group Mentorship class. The next class begins Dec. 15, 2016. Click here for details. If you have any questions, contact us via the contact page or call us at 1-888-607-0008.
Here’s the first part of the webinar from Dec. 6, 2016. Toward the end of the year, the market starts to rally. John Paul believes the end of 2016 is likely to trend this way (bullishly). At about 2:40 in, market open is discusses with an emphasis on candlestick interpretation (candles vs. wicks and what they mean). Traditionally, market open is difficult to trade because of the increased volatility. Often, there’s a push higher or lower. Moving averages or other common indicators see these big moves and can give bad advice. The move can quickly be over, followed by chop that makes taking profit tricky. The ATO (At the Open) software simplifies finding breakouts by producing entry signals on the chart. You’re taught the exact rules for entry, profit target, and stop loss.
You can use NinjaTrader’s Fibonacci Retracement tool to measure the midpoint between two candles. This is useful when finding entries during common bullish December price action. Configure the tool to only draw the 0%, 50%, and 100% values. We’ve covered this in recent videos. The tool is use unconventionally to find areas where the market has tested highs and lows. The ATR (Average True Range) is used here to determine the profit target and stop loss. When price surpasses the 50% level on the way back up, it’s time to consider placing a trade. The idea is to follow the momentum back up. Of course, the market can do whatever it wants at any time, so trade carefully. It can begin chopping right after passing the 50% level, so it’s best to get in and out quickly to limit risk. Towards the end of the video, you can take a look at the Atlas Line and how it provides additional confirming for long moves.
Get signals like this – click here to purchase the Atlas Line®
Here’s a sped up look at the first Atlas Line trade that occurred yesterday, Dec. 6, 2016 on the E-mini S&P. The Atlas Line produces a long signal at about 9:55 a.m. EST when price was at 2203.25. This signal appeared because there were two closing bars above the purple Atlas Line. The signal appeared on the close of the second candle. If the candles closed below, this would have been a short signal.
John Paul used 11 contracts, but it’s best to use a smaller amount if you’re new to trading. The order was filled at 2202.5. The profit target was set at 2204 and the stop loss at 2199.5. To make the entry visible on the chart, the TextAndMarker setting was applied within NinjaTrader’s Data Series window. The goal is to make profit as quickly as possible. The longer you stay in a trade, the greater the exposure to risk. It’s also important to know exactly what profit target and stop loss you’re going to use ahead of time. When using preconfigured values (via ATM Strategies), quickly changing the profit and stop to appropriate values may decrease risk or prevent an early stop out. Within about 10 minutes, the profit target was hit (+1.5 points). To compute the profit or loss of a trade, multiply the profit or loss value (e.g. 1.5) by the price per tick of the instrument (E-mini is $12.50/tick), then multiply that by the amount of contracts used. Keep in mind, this does not factor in broker fees or any extra values. Check with your broker to learn about any extra fees.
The Atlas Line is included with the Mentorship Program, along with all of our other courses and software. The next Mentorship class begins Dec. 15, 2016. Eight weeks of live training will show you how to use all of our strategies together and turn them into one trading plan. Click here to find out more.