Advanced Day Trading Techniques You Should Know Pt. 1

Here’s a recent live webinar recording where John Paul shares his live charts. Right away, you can see a great Short signal produced by the Trade Scalper software!

Our approach is based on price action. We like to let the market “prove” to us that it intends to move up or down. Our risk (profit target and stop loss) is based on recent conditions. The Average True Range (ATR) period of four is used to gauge if conditions are slow or fast.

In the case of the Trade Scalper, at about 5:50 in the video, the presenter explains how a current ATR value between one and five is necessary for trading under normal market conditions. Below one point is too slow; above five points is too fast. There are other approaches one can take when the markets are volatile. We’ve covered this in recent videos.

We often use a 5-Minute chart to get a sense of price action. Many traders use chart time frames that are multipliers of five: 10-Minute, 15-Minute, 1-Hour, etc. The 5-Minute lets us take a look at moves or trends that may be less detectable on smaller or larger time frames.

At 6:55, John Paul shows how to use the NinjaTrader ruler tool to measure the amount of ticks or points between two areas on a chart. The shortcut is Ctrl+F3. Click the first or start point, click the end point, and then click away to set the location of where the measurement data will display. The ruler tool is also available via the drawing tools menu at the top of every chart. Look for the pencil icon.

At 11:30, learn about our free trading news events indicator that’s available for free on our downloads page. The indicator allows you to see scheduled financial news events on your chart without having to navigate to a news website. If you enroll in our eight-week trading school (Mentorship), we provide you the ad-free version of our news indicator.

Jump to 12:50 to see how John Paul recommends tackling current and future market conditions overall. He predicts the market will go higher in 2020. Using a Daily chart timeframe, you can get a clear picture of recent highs and lows. At this point, where do you buy and where do you sell? By the end of 2020, he thinks the ES will reach the previous highs of February 2020. He says the “move” is at 3,400. A stop loss of 200 to 300 points is unfeasible for most traders. However, 2,782 is the midpoint. That’s where you look for Long (buying) opportunities. It’s possible the market will hover around the midpoint for multiple months. It’s happened in the past. We may see this “pause” around the halfway point before the continue upward in the coming months. He says your winning potential will likely increase dramatically when looking for long opportunities above the halfway (2,782 midpoint) in the coming weeks and months. Knowing this, if you want to maximize your potential, enroll in our next Mentorship Program.

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