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In this video, John Paul uses the Atlas Line and takes a loss and then a win. October 13, 2014 was a very volatile day with many trading opportunities. It’s important to stay out of the market when it’s too volatile and too slow.
In the beginning of the day at around 10 a.m. US/Eastern, a Short signal appeared with price at 1895.25. John Paul followed the Atlas Line’s direction, placing a Short trade. The profit target and stop loss were preconfigured in the ATM strategy, allowing for the horizontal green and red lines you see on the chart. With the Atlas Line, you are always watching for the first stop loss rule to take place. Since the market is so volatile, a four point catastrophic stop loss is used, which is based on the market’s ATR value at the time of entry. The prove-it stop rule was hit first with price closing on the opposite side of the Atlas Line on the 10:05 bar. John Paul then manually closed out of the trade with a loss.
Next, it was time to wait for another Atlas Line trade. John Paul was waiting for two consecutive closing bars above or below the Atlas Line, which would generate a Double Bar Long or Double Bar Short trade, respectively.
Another short trade occurred again. You’ll have to watch the video to see what happens! Remember that the Atlas Line is included with the Mentorship Program that begins October 20, 2014. You can also purchase the Atlas Line separately: