Price Action Trading: Decoding What Works

This recent webinar was recorded live. We recovered many topics related to price action. We also shared live Atlas Line and Trade Scalper signals as they occurred. Be sure to revisit this trading blog often for more content. Also, you can get notified of new videos by subscribing to our YouTube video. Follow the instructions in the first video.

Webinar Pt. 1 – What Works in Price Action Trading?

The live webinar begins with John Paul using the NinjaTrader 8 platform with the Trade Scalper and Bar Timer indicators. The Trade Scalper is typically used with a 1-Minute or 2-Range chart. We like the 1-Minute during periods of greater volatility. Jump ahead to 12:00 if you want to see the 2-Range chart. This scalping method is one of our price action techniques we created a number of years ago that remains powerful. The Bar Timer is a free NinjaTrader indicator that tells you when the current plotting candle will close. Essentially, it’s a countdown to zero for each candle that appears. Another setting we like to apply: rather than a typical mouse pointer, we prefer the crosshair. This way, we can easily measure price and time values.

If you want to understand how the E-mini S&P 500 tick and price increments work, jump to 4:25. This is important, as you should know potential profits and losses in dollar amounts. Check with your broker as well. We typically recommend NinjaTrader Brokerage because they’re related to the trading platform. When you’re trading with real money, remember that brokers typically apply a round-turn fee, per-contract, per-trade.

Moving averages, MACDs, etc. are said to lag. By the time you feel comfortable, the good price activity may be over with. Let’s focus on price and time instead. We like to use candles to tell us rather than traditional indicators that require specific values. Curve fitting data (stretching far back into history) can lead you astray. Focusing on recent price activity keeps things current. This is why we like to use the ATR (Average True Range) indicator with a period value of four rather than the default value of 14.

Webinar Pt. 2 – Decoding the Market With Price Action Trading

Want to see how the Atlas Line performed? We cover it beginning at 2:00 in this video. The dashed pink line is the Atlas Line. Some people use it for the signals, others as a filter, and many people use it for both reasons. Generally, look for selling opportunities when price is below the Atlas Line. When price is above, look for buying opportunities. The automated price action Short (sell) and Long (buy) signals appear tell you when to place a trade. You can set up an audio alert. A sound plays when it’s time to place a trade. Also, the Atlas Line price action indicator includes additional Strength (S) and Pullback (P) signals. This page contains more Atlas Line information.

The best way to get both the Atlas Line and Trade Scalper is to enroll in our eight-week training program called Mentorship. Everything is included (much more than those two methods) and explained during the eight weeks. We record each session so you can log in, as a member, to watch the video recordings. We hope to have you in our upcoming class! Click here to learn more and enroll.

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