» Get the Atlas Line «
The Atlas Line consists of the plotting line, Dbl Bar Long and Dbl Bar Short signals, and any small S (Strength Trade) and P (Pullback Trade) marks you see on the chart. These indications are plotted automatically. All you have to do to configure the Atlas Line is supply the market open time and the signals are then generated.
On July 17, 2014, two consecutive bars close above the plotting Atlas Line to generate a Long (or buy) signal at 1973.75. Notice the Atlas Line plotting as a dashed, pink line behind the large green candle. John Paul places a limit order at the closing price of the second bar above the Atlas Line, which is the entry price of 1973.75. He advises never to chase the market for a higher entry, as that will lead to smaller profits and the market possibly turning against you. The order is then filled. Notice the stop loss is rather large – this is a catastrophic stop, which acts as a safety net in case price unexpectedly decides to take off against the anticipated market direction. In most cases, this catastrophic stop is never hit – if the profit target is not hit, one of the lesser stop losses is usually hit, such as the prove-it stop, time-based stop, or pivot-stop. For all Atlas Line trades, the ATR (Average True Range) is used to calculate the profit target. The ATR provides a realistic value of volatility and what can be achieved in terms of potential profit. As shown, this first trade is good for over 1.5 points of profit. A short trade was produced about an hour later as a result of two consecutive closing bars below the Atlas Line. The signal as generated at 1968. This would have been an excellent trade.