On November 16, 2017, the Atlas Line produced a nice long trade before the market trended upward. Remember that our previous video shows how the January Effect may have predicted this move up. This video shows you how the Atlas Line signal was traded. Because of the Long Atlas Line signal, John Paul placed a Buy market order. In the DOM window, you can see how he had an ATM Strategy selected called “fast 3 point market.” Because Chart Trader was enabled, you can see the green profit target and red stop loss lines directly on the chart. This is a visual indication of where you want price to reach for profit (green line) and where you want price to stay away from (red line).
With the Atlas Line, multiple stop loss strategies are used in an attempt to limit risk and maximize profits. In total, about four different stop strategies are taught for use with the Atlas Line: catastrophic, prove-it, time-based, and pivot stop. We use stops that are specific to current market conditions. That is also true with profit targets, as explained by John Paul in this video at 2:40.
The Atlas Line is useful for the January Effect because it may help you find winning long trades that expected to occur throughout the remainder of the year. It’s always important to take time to practice. If you need help getting set up with NinjaTrader and live data for practice, we can point you in the right direction with our free trading guide. You don’t need a broker or to purchase the trading platform to get started.