Last week, John Paul took a look at the E-mini S&P and the Atlas Line. He scrolled through four days of history, showing the many signals produced by the software. You can see more recent trades here. The idea of the Atlas Line is to provide you an exact entry and an overall direction of whether you should be long or short. When price is above the plotted Atlas Line line, go long. When below, go short. It’s a simple way of thinking.
You might be wondering how the Long and Short signals are produced. There needs to be two closing candles above the Atlas Line for a long signal. Similarly, two closing candles below the plotted line will produce a Short signal.
Sometimes, it can be a bit tricky to decide when / where the entry is. The Atlas Line has a BarsBack parameter that lets you specify how far back the order signal plots. If you zoom in on your chart and take the BarsBack into account, you’ll know exactly what candle the entry corresponds to. Alternatively, just look for the two closing candles above or below.
For your stop losses, there are a few different strategies. We take whatever comes first. (In case you’re new to trading – you are hoping your profit target is hit. The stop loss is what’s hit when price does not go in your favor -it’s a safety net.) The prove-it stop occurs when price closes on the opposite side of the line. The time-based stop occurs when 20 minutes have passed (four bars on a five minute chart). No need to hold the trade longer than that – get out at the current price. And the catastrophic stop is the big safety net – in case the market unexpectedly and sharply rises or falls in a short time frame. All of the stops are covered in detail during the hour-or-so long live training that’s included with purchase.