Right away, we can see there was a nice winning Atlas Line trade. The Short signal followed by the drop in price shows that clearly. What happens when we apply the Trade Scalper to the same chart?
Your eyes may be drawn to the Trade Scalper software’s wining short signal that appeared at the same candle as the Atlas Line’s short signal. Remember, we like it when two systems confirm the same thing – anticipated price direction, that is.
It’s not often that John Paul discusses the Atlas Line Bounce signals. These can be enabled within the indicator settings. Go to 1:17 in the video for an explanation. The Atlas Line keeps the same direction throughout the day. There’s a reason why that is, but we won’t get into that here. The point is that the angle and trajectory of the line is important. So when price bounces off the line or passes through it, that’s considered important. Thus, signals may occur soon after either scenario.
At 2:48, you’ll see a Double Wick Short signal from the Trade Scalper. John Paul places a trade. Upon getting filled, you’ll see the profit target and stop loss lines on the chart. That’s because he’s using an ATM Strategy along with the hidden mode of Chart Trader. The profit target is 2.5 points. The Atlas Line’s “advice” is still in effect here because it’s a Short trade below the Atlas Line. Remember, we use the Atlas Line in conjunction with other systems to determine if we should be going long or short at a given time.