The E-mini reached all-time highs recently. If you’ve been following our videos, you probably saw how John Paul predicted a year-long bullish trend back in January of this year. Again, the January Effect is proving accurate. This video is a recap of the activity.
To begin, take a look at the Friday, Sep. 29 Atlas Line signals. A number of good signals were provided. The Atlas Line is great for 5-min charts, but it is not meant to be used for daily charts. Daily charts are what you use to see the January Effect in play. Here’s how the January Effect works: if price closed higher at the end of January as compared to the price early in the month, expect a bullish (upward trending) year. Of course, no trading strategy is 100% accurate, so expect some exceptions for some years. Even if the January Effect is applicable (and some years it isn’t), you will still find prolonged periods where price falls. That can be dangerous, but the great part about trading futures is that you can potentially make money by shorting the market.
When the price drops, that’s your opportunity to start looking for an entry point. Using the January Effect, you have an expectation the market will eventually retrace. When it begins to retrace, you can place a trade and ride the market up, hopefully making a profit. How do you know when the market is ready to go long? Look for a retracement (upward movement after a downward period) of 5 days or more. Use NinjaTrader’s Fibonacci tool. You can customize the tool to show you halfway (50%) between two points (a high and low). Enter in a few points after the 50% level. Wait until the market moves through the 50% with momentum. That’s where you place the trade.
Keep watching the video for more trading tips and clarification. If you want to learn everything John Paul has to teach you, we have a new Group Mentorship class that begins Oct. 10. You get all of our courses and software at a reduced price. It’s a great deal. Click here to learn more or call us at 1-888-607-0008.