Trade Smart: Use the Bar Timer When Scalping

Here’s a quick review of today’s Trade Scalper signals. We’re using the NinjaTrader 8 platform and a 1-Minute ES 12-20 (E-mini S&P 500) chart. Right away, you can see the many signals that occurred throughout the day. Everyone who uses the Trade Scalper has the exact same signals.

>> Get the Trade Scalper Signals on Your Charts <<

Three short signals were provided pre-market. It’s up to you if you want to trade beyond normal market hours. We prefer the first few hours of the day, so we’re done trading and can focus on other things.

After the E-mini “opened” at 9:30 a.m. US/Eastern, we had five signals within the first 1.5 hours. It’s up to you to place each trade; we recommend taking only those that are considered high-probability. For example, signals generated during too slow or too fast conditions are considered low probability. You will see there are somewhere around 20 total signals. Some of these signals are of the Double Wick type, which is discussed in the customer-only training.

In case you are new to our approach, we often use the bar timer indicator that is free with NinjaTrader 8. The bar timer displays a countdown for the amount of time until the current bar closes. On a one-minute chart, the bar timer counts down from one minute for each bar, resetting itself every minute. This is important because you often want to get ready to place a trade at the close of a bar. With the bar timer, you can say to yourself, “I have 10 seconds until this bar closes. When that happens, I will know I need to place a trade according to the Trade Scalper rules.” This way, you can get in and hopefully out of the market with profit, thus reducing the risk associated with getting in after a perceived opportunity has occurred.

We recommend watching the full video because John Paul provides some insight as to how to best trade at day’s end.

Four E-mini Signals for Today in Review

In this video, you’ll first see two great short signals today from the Trade Scalper and Atlas Line. After that, you’ll see two real-time trades based on the Trade Scalper and Atlas Line signals.

The entry point for the short Atlas Line signal occurred just before price made a big move down. That’s exactly what we like to see. And the move down after the Trade Scalper signal (the short at 3343.5) was enough to reach the profit target.

If you want to see the real-time trades, the first one occurs at 1:43 in the video. That’s a long (buy) Trade Scalper signal with a profit target of approximately 2.25 points. How does the math work out? 2.25 points * 4 ticks in a point = 9 ticks, each ES tick is worth $12.50, so $12.50 * 9 = profit of $112.50 trading 1 contract before any broker fees, etc. If you trade more than one contract, multiply the $112.50 by the amount of contracts traded and subtract the appropriate amount for broker and trading-related fees).

The last real-time trade shows how the Atlas Line and Trade Scalper both agreed it was time to place a Long trade. We like when multiple systems agree on the anticipated direction of the market. As such, a long trade was placed.

We’re counting down to the next Group Mentorship Program, which begins Sep. 15, 2020. With Mentorship, you get all courses and software with Lifetime licenses. It’s the best way to get everything without worrying about, “What did I miss?” or, “What could I be doing better?”

3 Trading Systems Correctly Find Winning Long Trades

Earlier today, we posted a video that describes three price action conditions to look for. In the video, recall that the today’s E-mini S&P price action trended up for a considerable period. Also, in that other blog post, we mentioned how the goal of many trading systems is to recognize winning opportunities before they occur. So, how did our trading software perform today? This video shares signals from the ATO 2 and Atlas Line.

At about 1:11 in the video, John Paul adds the ATO 2 software to the chart. Right away, we can see two long signals: the main ATO signal (Long in this case) as well as an ATO-C signal (for “Chaser”; also long in this case). At 1:50, he adds the Atlas Line software to the same five-minute chart. The Atlas Line also said to go Long (buy the market) around the same time as the first ATO 2 signal. What about the Trade Scalper? Go to 2:34 and you’ll see a number of Long signals that provide many additional opportunities to buy the market.

We like when multiple signal systems confirm the same direction, as was the case today. This was also the case last week, for example, if you take a look at the two chart pictures we published on Friday or so.

Are you using none or just one of these trading methods? Consider getting the others or enrolling in our eight-week Mentorship Program that includes everything and more. The next class begins Sep. 15, 2020. See you there!

3 Price Action Chart Patterns to Learn Today

Now, we shall examine the three different types of price action chart patterns.

In case you are unfamiliar with the term “price action,” it refers to price movement, patterns, and other observable price characteristics on day trading charts. We use price action to determine how we trade, including first recognizing whether an opportunity exists, what the goal (profit target) and risk (stop loss) should be, and how to manage a trade after an order is filled.

In the video, you are first shown an example of a trend. Price moves upwards (aka bullishly) over a considerable period of time. If you were to buy early in this trend and hold the position through the climb up, you could exit the trade with a profit. However, spotting trends before they occur is easier said than done for most traders. That is why the goal of many trading systems, including those we offer on our site, is to identify such trends as well as other potential winning opportunities.

The next example of a price action pattern provided in the video demonstrates both slow, fast, and favorable trading conditions. The primary tool (indicator) in use to gauge tradability is the ATR (Average True Range). Be sure to set the period value of the ATR value to four (4) first, as the default value of 14 will lead you to inconsistent conclusions! In a basic sense, favorable trading conditions occur when then the ATR value is between two and four points. If the ATR value one or less, the market is considered too slow (or risky) to be worth trading.

Continue to watch the video above to learn more.

Note that we teach how to filter and further assess market conditions in our eight-week Mentorship Program. The next class begins Sep. 15, 2020. Early enrollment is encouraged, as you will be able to learn a new trading method before class begins. We hope you will find the material rewarding in many ways.

Great Short Signals: See These Charts From Today + Yesterday

Before we close out the week, we wanted to share charts from today and yesterday. In the following charts, we were running the Atlas Line, ATO 2, and Trade Scalper indicators on a 5-Minute E-mini (ES 09-20) chart in the NinjaTrader 8 platform.

There are many signals, so we added color-coded arrows to help you identify some of the approximate signals and subsequent moves:

  • Purple arrows are for the Trade Scalper
  • Dark red arrows are for the ATO 2
  • Light red arrows are for the Atlas Line
Day Trading Indicator Performance for Sep. 4, 2020
Day Trading Indicator Performance for Sep. 3, 2020

We like it when multiple signals “agree” on the anticipated market direction. We then feel more confident to keep scalping or taking any other type of trade in the same direction. On both days, you can see that direction was short (or sell).

These indicators/methods are part of the many benefits of our eight-week Mentorship Program. You get all the above plus much more. Click here to read about Mentorship and consider enrolling in the upcoming Sep. 15, 2020 class.

Note These Upcoming 2020 & 2021 Trading Holidays

Trading Holidays 2020-2021As a trader, it’s important to pay attention to trading holidays. You probably want to avoid volatile or slow conditions that can occur on or around holidays.

The following information focuses on CME Group equity products such as the E-mini S&P. If you would like to know the hours associated with other exchanges (NYBOT/ICE, NYMEX, EUREX, etc.) or markets, we encourage you to investigate on the appropriate websites. All times below are for the US/Eastern time zone.

Only non-standard halts, closures, etc. are listed. For more information, see the official CME Group holiday trading information here: https://www.cmegroup.com/tools-information/holiday-calendar.html

Labor Day, Monday, Sep. 7, 2020
1:00 p.m. halt, 6:00 p.m. resumption

*On Sep. 10, 2020 or soon after, remember to roll over your E-mini S&P 500 (aka ES) from 09-20 to 12-20.

Thanksgiving Day, Thursday, Nov. 26, 2020
1:00 p.m. halt, 6:00 p.m. resumption

Black Friday, Friday, Nov. 27, 2020
1:15 p.m. close

*On Dec. 10, 2020 or soon after, remember to roll over your E-mini S&P 500 (aka ES) from 12-20 to 03-21.

Christmas Eve, Thursday, Dec. 24, 2020
1:15 p.m. close

Christmas Day, Friday, Dec. 25, 2020
Closed

New Year’s Day, Friday, Jan. 1, 2021
Closed

You may also use our trading news page to get information about high, medium and low impact events that may affect the markets. Disable any ad-block for the best experience. Also, NinjaTrader has a Trade Desk Calendar with additional information: https://ninjatrader.com/blog/trade-desk-calendar/


Here’s How 3 of Our Signal Systems Performed Today

Here’s a review of today’s signals for the ATO 2, Trade Scalper, and Atlas Line as applied to the E-mini S&P 500 (ES 09-20). We start the day observing the ATR (Average True Range) nearing five points. Note the ATR is configured with a period value of four. Other values, such as the default 14, will not give you the same “readout” that we use to make trading decisions.

Click here to get the ATO 2, Trade Scalper, and Atlas Line

The first signal reviewed is the ATO 2. It’s a Long signal at about 10 a.m. US/Eastern. The Long signal is the ATO 2 indicator saying “buy as soon and as close as you can to the displayed price (3503).” Everyone who has the ATO 2 software should have received the same signal, so there is little room to mess up the configuration unless it’s different than the few settings displayed. The ATO 2 typically aims for one or two trades per day soon after the market opens.

Next, John Paul moves on to the Atlas Line. Again, we’re dealing with another great Long signal. This Long signal occurred at approximately 10:10 a.m. US/Eastern. Additional Strength trades (see the small green S signal text) appeared soon afterwards. These were additional opportunities. You can probably see already the Atlas Line produces more trades than the ATO 2. The underlying mechanics are entirely different as well. Throughout the remainder of the day, additional Strength and Pullback signals were plentiful.

Lastly, the Trade Scalper signals are shared. Be careful regarding the volatility of premarket conditions. If the markets are too slow or too fast, it’s best to avoid trading. The rules for gauging the market in this way are discussed in the included training (but you must first purchase the Trade Scalper). Note that all of our courses and software include training. Notice how there are approximately eight signals by 11 a.m. US/Eastern. Yes, the Trade Scalper produces the most signals compared to the two other methods. However, the Trade Scalper serves to provide many small opportunities rather than fewer, larger moves as is more the goal with the other two methods.

Micro E-mini vs. Regular E-mini: Comparison & Explanation

Ever considered trading the MES (Micro E-mini S&P 500) instead of the ES (E-mini S&P 500)? The price action is the same, only the MES is regarded as more affordable. That’s because the value is 1/10th the ES. Some brokers, such as NinjaTrader Brokerage, allow you to fund an account as little as $400. We recommend practicing first, and then when you feel comfortable, start off with a small amount. The $400 amount to fund an account is a bit on the low side in our opinion, as you would probably want a bit more than that to absorb some losses (a part of trading). This video explains further…

Get the signals from the video: Atlas Line, Trade Scalper, and more

Recall from prior videos that the ES (E-mini S&P 500) is worth $12.50 per tick. A point is considered four ticks, therefore one point = $50 USD. Because you now know that the MES is 1/10 the value, we can use some basic math to determine each tick of the MES. $12.50 (ES tick value) * 1/10 = $1.25 (MES tick value). $50 (ES point value) * 1/10 = $5 (MES point value). Make sense? Great!

So, the main appeal of the MES is affordability. Stock trading can require an account size of $25,000. That’s out of range for many people. The E-mini S&P 500 can be traded with $3,000 or more (even less with some brokers). The Micro E-mini S&P 500 can be traded with as little as $400, as mentioned previously. If you decide to start off with the MES and find success in growing your account, you may want to switch over to the ES or trade with more MES contracts.

Recovering After a Trading Loss: Real-world Example

Here, we have a total of four trades thus far: one loser and three winners. This video can give you a sense of real-time Trading using the Trade Scalper. We also share the Roadmap for a bit. Let’s see what happened with each consecutive trade…

Trade #1 (winner): a Long Trade Scalper signal at 3426. The profit target was one point. We prefer to reduce the amount of time in a trade as much as possible, so we impose a time-based stop (exit/close), should our profit or regular stop not get hit. Note that the clip ends early, but this does, in fact, result in a winning trade.

Trade #2 (loser): a Short Trade Scalper signal at 3425. He uses a pivot-based stop. Price continues in the opposite direction we want. This stop is hit at negative two points. When facing situations like this, it’s important to remind yourself to look at the big picture, as losing trades can and will occur. It’s part of trading!

Trade #3 (winner): a Long Trade Scalper signal at 3425.25. The goal of this trade is to get back to breakeven. Rapidly, the profit target or one point is hit.

Trade #4 (winner): a Long Trade Scalper signal at 3429.25. This was another one point winner.

After purchasing the Trade Scalper, you’ll get all the training material you need to fully understand how it works. We fully explain the trading methods using plain English, so you don’t need to be a trading expert to understand. We have many clients from all walks of life who simply want to be independent and have a chance to succeed in the markets, and in life!

E-mini Signals: Scalping All-Time Highs + Accurate Prediction

Many winning signals here for the Trade Scalper. John Paul estimates one losing signal among 13 winners. Not bad, eh? Note the extended period of time. In addition, you’ll see a real-time trade at the end. See how the order isn’t filled? It can happen to the best of us. In this case, another Long signal appears so we simply move the buy (long) MIT order up closer to the new signal.

By the way, the E-mini S&P 500 has reached all-time highs. Remember when John Paul said it would earlier in the year? He gave you a plan and a way to take advantage of the anticipated recovery. Did you do it? Many doubted this would occur, but he was right. Also, the market is now less chaotic than it was. It’s more tradeable now, as you can see with the Trade Scalper signals. It’s a great time to trade!

What better way to learn how to trade than to participate in the upcoming Aug. 24 Group Mentorship class? You’ll get all courses and software with Lifetime Licenses and learn everything we have to teach you. Yes, you’ll be scalping and using the Roadmap, Atlas Line, etc. in no time…see you in class!

All trades should be considered hypothetical. No guarantees or claims of performance are offered. Past performance is not indicative of future results. Day trading is risky and may cause substantial financial loss. Individual performance may vary, as trading subjects your finances to new, unexpected market conditions. You are responsible for executing trades. Before trading, consult with a licensed broker and a financial expert see if day trading is suitable for you.