Today, the Atlas Line produced a Long signal at 1857.75 as seen on the chart. The doorbell sound was heard, as the Atlas Line can be configured to play sound file for the main Long and Short signals. John Paul’s Limit order was filled at the desired price. His catastrophic stop was at 1853.75, four points below the entry. In most cases, the catastrophic stop is not hit; it’s just there as a safety net. From this point, John Paul manages the trade by tightening the profit target slightly to 1859.50 (1.75 points of profit, if hit). Right away, price approached his profit target. Price danced around, retracing values it reached previously. As he says, markets love to retreat back to tested waters regularly. Within 10 minutes, price broke through the profit target, earning the 1.75 points (or $87.50 profit with one contract, $1050 with 12 contracts as seen here). Remember, the ES is worth $12.50 per tick and there are four ticks per point. 1.75 / .25 = 7 ticks x $12.5 = $87.5 (1 contract) or x 12 = $1050 (12 contracts).
Remember, you can get these same exact Long and Short entries on your charts everyday. Click the link above to find out more about the Atlas Line.
