Learn the ATO strategy and many more price action methods by taking part in the next Group Mentorship. Group Mentorship begins Sep. 7, 2016. All courses and software are included. Click here to secure your seat. With your deposit, we will send you the ATO course and software, so you can get started right away.
We’ve had some slow activity in the markets lately. If conditions are too slow, it’s difficult to find trades. On daily charts, you will often see cycles consisting of groups of candles in tight ranges followed by sharp break outs. In this webinar, John Paul covers how to handle this behavior. If recent days have been slow, assume more of the same. If the market begins to stall, then a change in direction may soon occur. You can get a better picture of daily activity by switching to a daily or monthly chart. If a day has a large range range, there’s a chance the following day will trend.
What about intraday? At about 7:50 into the Part 1 video, John Paul explains the concept behind the ATO (At the Open Strategy). When a market first opens, there is often a push in one direction (up or down). Being able to recognize the direction and using it to take profit is the basis of the ATO. If you take the European or Australian market open and match up the times in the E-mini, you can often see the market pushing in one direction at these times as well. After the direction is determined, is there a way to get a better entry price? Markets love to test where they’ve already been. Wait for the retest to occur. Even though the ATO will plot signals in the afternoon, only consider trades in the first 2.5 hours. If no signals generate by noon, then there were simply no trades for the beginning push of the day.
At about 28 min. into the first part, you can see two ATO trades that at first look, would have not worked out. Sometimes, you can get a signal, but no fill. This means the market is too strong to the upside or downside. This setup here is called Chase the Trade – it’s an additional long or short available if the original fill does not occur. Chase the Trade trades are placed as stop with limit orders (middle mouse button). Then it’s a matter of waiting until price hopefully goes in your favor.
In Part 2, John Paul discusses using the ATO on the Euro (6E), front-running trades, MIT orders, scalping, and more.