Want to see what our signals did today? Check this out…
By the way, this is similar to a post we did last Friday or so. Here’s a review of today’s signals. This time, we’re sharing all three (3) of our standalone systems:ATO 2, Atlas Line®, and Trade Scalper. The following shows all three signal systems in that order…
The late-day ATO 2 trade was a surprise. We also saw a great late-day Atlas Line® Strength Signals (the small S text on the chart).
Speaking of that time period with the big down move, we though it best to share with you the related Trade Scalper signals on a 1-Minute chart and see if there were any signals during that big downward move. Indeed, there was! And those short scalping signals were plentiful. See them at the end of the clip above. Playback loops in most browsers, so watch it a few times.
In case you’re wondering, the best way to get all three of these systems and much more (with Lifetime Licenses) is to enroll in our eight-week Mentorship class. The next Group Mentorship class begins Nov. 2. With early enrollment, we’ll set you up with one of the systems featured above. Click here for the Mentorship page or email us directly to get started: firstname.lastname@example.org
Update: Today, Oct. 12, 2020, we had a big up today. Wow! Yes…just as John Paul said we would in the live webinar that occurred on Friday, Oct. 9, 2020. So, did you buy the market and hold on?
Also, the Atlas Line® chart below confirms the up move. Yes, you can combine the Atlas Line® with these January Effect retracements to identify intraday opportunities! Only so many opportunities like this remain for 2020…
Feel free to read on as the remaining portion of this post is untouched and as we wrote it on Friday, Oct. 9, 2020…
Today, John Paul conducted a live webinar where he shared predictions, big upcoming opportunities for swing trading, and of course, signals across a variety of instruments and charts.
The following video is a segment of the webinar that discusses the January Effect only. Why is this important? We are in the final months of 2020. Now, we expect to see the January Effect in action more than ever.
In case you’re not familiar with the January Effect, the basic idea is as follows. If you take the starting price of the E-mini on Jan. 2, 2020 (the first day the market was open) and then on the final trading day of the same month (Jan. 30, 2020), if price was higher closing the month than opening the month (an “up month”), the year will be an “up year.” This means that December 2020 will close higher than the year opened in January 2020. Using this January Effect strategy, you can look for long (buying) opportunities at key points throughout the year. This explanation begins at approximately 4:00 in the video above.
In early February of this year, there was a buying opportunity that would have been successful. Then by February 20 or so, we saw the market hit a peak and there was a dive. By June, we saw the market recover. Keep in mind, the halfway (50%) point in the upward climb is the point to watch for. If you have the previous high and an established low (after some time of course) with what looks like a recovery on a daily chart, then use the Fib tool configured with three values (0%, 50%, and 100%) to easily identify the halfway (50%) point and wait until it’s surpassed with closing bars. Then look for your entry. Another winning example is provided using early August.
At this present moment, we have what appears to be a prior high, a bearish trend, and upward movement! Price has just surpassed the 50% level. Conditions look ideal for buying. Again, we expect this year to be an “up year” overall, so we have more confidence in this type of trading. Keep in mind, we’re talking about buying the market and holding it for multiple days. This type of trading is different than the typical intraday trading related to our signal systems.
So, will you be buying the market/going long now?
If you want to have a pro trader teach you how to trade, now is the time to enroll in our eight-week Mentorship Program. The next Group class begins Oct. 15, 2020.There are only so many big opportunities left in 2020…
Did you trade the huge afternoon move down today? In the E-mini S&P 500, we saw it drop -19 points over 19 candles.
The conventional explanation for the big move is that President Trump announced stimulus discussion would resume after the election (i.e. don’t expect a stimulus this month). I know, I know. Let’s keep the politics aside and focus on the price action…
…As they say, a picture is worth a thousand words, or maybe a thousand dollars, if you were following these signals with the right number of contracts.
Now, I suggest that you look very carefully at the chart image below. We’re using two Atlas Lines here. The blue Atlas Line (the one on top) is using the traditional 9:30 a.m. market open setting. The magenta Atlas Line is using the taught but less commonly used 12:00 p.m. market open setting (that typically generates more afternoon signals).
If you look carefully, do you see how price bounces right off the blue Atlas Line! It’s almost as if the Atlas Line can be used as a forward-looking predicative tool. I bring this bounce up because we see how price, time and time again, seems to “react” to the Atlas Line. Remember, the Atlas Line “line” extends at the same angle throughout the day – it doesn’t change once it begins plotting soon after the given market open time.
Note there is no Atlas Line signal generated from that bounce. The Atlas Line Short signal that you see is the result of the second (12:00 p.m.) Atlas Line.
The two other short signals come from the Trade Scalper software. These signals were also good, but scalping trades go for smaller amounts than the Atlas Line trades.
Wow, what a day this was. Things may be getting more political day by day, so we may in for more wild days. Be sure you’re using trading methods that you feel comfortable with! We have a new 8-Week Group Mentorship class that begins Oct. 15, 2020 that includes all courses and software with Lifetime licenses. We’d like to have you in the class – click here for details.
Do any trading this afternoon? Here’s a quick review of this afternoon’s Roadmap signals. Instead of a video, we found it quicker to provide this short review…
As you can see, the Roadmap’s zone boundaries (the red and bluish lines) are predictive boundaries. They help indicate “special” price boundaries. If price moves beyond these areas in just the right way, expect the Roadmap to plot a Long or Short signal. We can’t go into any more detail than that unless you enroll in Mentorship!
What else will you get with Mentorship? • Eight weeks of personal training with a pro • Atlas Line® software • Roadmap Trade with software • Blueprint Trade (Power Price Action method) • The X-5 Trade (Floor Trader Secrets method) • At the Open (ATO) Course with software • Trade Scalper Course with software • Price Action Scalping Course with software • ABC Pattern • How to Filter Trades • How to Trade the News • How to Set Up Your Charts • How Manipulation Works …plus much more!
What if you could identify a trending day and capitalize on winning moves before the day is over? This video explains a complete way to find ABC trades using price action and basic chart tools.
First, you have to think about what time the market opens. For the E-mini S&P 500, we consider that 9:30 a.m. US/Eastern. If you live in a different time zone, do the math to determine 9:30 a.m. New York time vs. your time and use that. The next 2.5 forms the A period. Therefore, 9:30 a.m. + 2 hours = 12:00 p.m. That’s where we draw vertical lines using the NinjaTrader chart tools. We then use a rectangle tool with transparency to encapsulate the highs and lows of the A period.
Now, as the chart begins to plot in the B period (after 12:00 p.m.), we wait for two consecutive closing candles to plot either above period A’s high or below period A’s low. If two closing bars occur above, that constitutes a Long (buy) ABC trade. Similarly, if two closing bars occur below, that constitutes a Short (sell) ABC trade.
Okay, continuing on with period B, note that period B is also 2.5 hours in duration. Remember the range you constructed for period A? The same idea applies here. Draw an additional vertical line at 2:30 p.m. US/Eastern (14:30 in NinjaTrader) or your time zone’s equivalent. After 2:30 p.m. US/Eastern, in period C, wait until two consecutive candles close above or below the high or low of period B. That constitutes the trading opportunities for period C.
Here’s a quick review of today’s Trade Scalper signals. We’re using the NinjaTrader 8 platform and a 1-Minute ES 12-20 (E-mini S&P 500) chart. Right away, you can see the many signals that occurred throughout the day. Everyone who uses the Trade Scalper has the exact same signals.
Three short signals were provided pre-market. It’s up to you if you want to trade beyond normal market hours. We prefer the first few hours of the day, so we’re done trading and can focus on other things.
After the E-mini “opened” at 9:30 a.m. US/Eastern, we had five signals within the first 1.5 hours. It’s up to you to place each trade; we recommend taking only those that are considered high-probability. For example, signals generated during too slow or too fast conditions are considered low probability. You will see there are somewhere around 20 total signals. Some of these signals are of the Double Wick type, which is discussed in the customer-only training.
In case you are new to our approach, we often use the bar timer indicator that is free with NinjaTrader 8. The bar timer displays a countdown for the amount of time until the current bar closes. On a one-minute chart, the bar timer counts down from one minute for each bar, resetting itself every minute. This is important because you often want to get ready to place a trade at the close of a bar. With the bar timer, you can say to yourself, “I have 10 seconds until this bar closes. When that happens, I will know I need to place a trade according to the Trade Scalper rules.” This way, you can get in and hopefully out of the market with profit, thus reducing the risk associated with getting in after a perceived opportunity has occurred.
We recommend watching the full video because John Paul provides some insight as to how to best trade at day’s end.
In this video, you’ll first see two great short signals today from the Trade Scalper and Atlas Line. After that, you’ll see two real-time trades based on the Trade Scalper and Atlas Line signals.
The entry point for the short Atlas Line signal occurred just before price made a big move down. That’s exactly what we like to see. And the move down after the Trade Scalper signal (the short at 3343.5) was enough to reach the profit target.
If you want to see the real-time trades, the first one occurs at 1:43 in the video. That’s a long (buy) Trade Scalper signal with a profit target of approximately 2.25 points. How does the math work out? 2.25 points * 4 ticks in a point = 9 ticks, each ES tick is worth $12.50, so $12.50 * 9 = profit of $112.50 trading 1 contract before any broker fees, etc. If you trade more than one contract, multiply the $112.50 by the amount of contracts traded and subtract the appropriate amount for broker and trading-related fees).
The last real-time trade shows how the Atlas Line and Trade Scalper both agreed it was time to place a Long trade. We like when multiple systems agree on the anticipated direction of the market. As such, a long trade was placed.
We’re counting down to the next Group Mentorship Program, which begins Sep. 15, 2020. With Mentorship, you get all courses and software with Lifetime licenses. It’s the best way to get everything without worrying about, “What did I miss?” or, “What could I be doing better?”
Earlier today, we posted a video that describes three price action conditions to look for. In the video, recall that the today’s E-mini S&P price action trended up for a considerable period. Also, in that other blog post, we mentioned how the goal of many trading systems is to recognize winning opportunities before they occur. So, how did our trading software perform today? This video shares signals from the ATO 2 and Atlas Line.
At about 1:11 in the video, John Paul adds the ATO 2 software to the chart. Right away, we can see two long signals: the main ATO signal (Long in this case) as well as an ATO-C signal (for “Chaser”; also long in this case). At 1:50, he adds the Atlas Line software to the same five-minute chart. The Atlas Line also said to go Long (buy the market) around the same time as the first ATO 2 signal. What about the Trade Scalper? Go to 2:34 and you’ll see a number of Long signals that provide many additional opportunities to buy the market.
We like when multiple signal systems confirm the same direction, as was the case today. This was also the case last week, for example, if you take a look at the two chart pictures we published on Friday or so.
Now, we shall examine the three different types of price action chart patterns.
In case you are unfamiliar with the term “price action,” it refers to price movement, patterns, and other observable price characteristics on day trading charts. We use price action to determine how we trade, including first recognizing whether an opportunity exists, what the goal (profit target) and risk (stop loss) should be, and how to manage a trade after an order is filled.
In the video, you are first shown an example of a trend. Price moves upwards (aka bullishly) over a considerable period of time. If you were to buy early in this trend and hold the position through the climb up, you could exit the trade with a profit. However, spotting trends before they occur is easier said than done for most traders. That is why the goal of many trading systems, including those we offer on our site, is to identify such trends as well as other potential winning opportunities.
The next example of a price action pattern provided in the video demonstrates both slow, fast, and favorable trading conditions. The primary tool (indicator) in use to gauge tradability is the ATR (Average True Range). Be sure to set the period value of the ATR value to four (4) first, as the default value of 14 will lead you to inconsistent conclusions! In a basic sense, favorable trading conditions occur when then the ATR value is between two and four points. If the ATR value one or less, the market is considered too slow (or risky) to be worth trading.
Continue to watch the video above to learn more.
Note that we teach how to filter and further assess market conditions in our eight-week Mentorship Program.The next class begins Sep. 15, 2020. Early enrollment is encouraged, as you will be able to learn a new trading method before class begins. We hope you will find the material rewarding in many ways.
Before we close out the week, we wanted to share charts from today and yesterday. In the following charts, we were running the Atlas Line, ATO 2, and Trade Scalper indicators on a 5-Minute E-mini (ES 09-20) chart in the NinjaTrader 8 platform.
There are many signals, so we added color-coded arrows to help you identify some of the approximate signals and subsequent moves:
Purple arrows are for the Trade Scalper
Dark red arrows are for the ATO 2
Light red arrows are for the Atlas Line
We like it when multiple signals “agree” on the anticipated market direction. We then feel more confident to keep scalping or taking any other type of trade in the same direction. On both days, you can see that direction was short (or sell).
These indicators/methods are part of the many benefits of our eight-week Mentorship Program. You get all the above plus much more. Click here to read about Mentorship and consider enrolling in the upcoming Sep. 15, 2020 class.
All trades should be considered hypothetical. No guarantees or claims of performance are offered. Past performance is not indicative of future results. Day trading is risky and may cause substantial financial loss. Individual performance may vary, as trading subjects your finances to new, unexpected market conditions. You are responsible for executing trades. Before trading, consult with a licensed broker and a financial expert see if day trading is suitable for you.
CFTC Rule 4.41: Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described herein. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Trade Results Disclosure: All trades presented are NOT TRADED IN A LIVE ACCOUNT and should be considered hypothetical.
Trade/Training Room Disclosure: Presentations are for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.
Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.