Part 1 – How to Trade December Price Patterns

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.

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