Not all day trading indicators are the same. You can somewhat classify the Atlas Line from DayTradeToWin.com as an indicator, but it has qualities that make it a comprehensive trading system. For example, you’re taught how to manage each trade: profit targets, stop losses, and how to ride each trade out. You’re taught how to validate market conditions in order to know whether trading is too risky and if you should stay out.  The indicator is also more forward-looking than others, meaning that its signals are meant to be used for the near future instead of constant optimization from past inputs. Truly, the Atlas Line is in its own league.

Let’s look at this chart and trading video recently published by DayTradeToWin.com. What’s the first thing that catches you? For me, I notice how price chopped back and forth in a channel. If I was hoping for a trend or trying to pick tops and bottoms, I would have probably found a significant loss. The Atlas Line appears to have been successful in finding opportune moments for its entry signals. Just look at all of them. Only one of them appears to be a losing trade. That’s not bad – five out of six were winners. Note that your live trading results may vary. If market conditions were exactly as shown and you followed the strategy perfectly, you should have won around +24 ticks, which is about $300 USD, before any broker or other trading fees. Not bad compared to the other day trading indicators that are out there.

Day Trading Indicators & Trade Management

What can be said about each of these trades? Well, the profit targets are all at one point or more per trade. When you look at the ATR (Average True Range), you can see what that is. The ATR reached two points earlier in the day then dropped later on. This is common behavior in the E-mini. You see, the Atlas Line uses a dynamic value for the profit target and stop loss. If market conditions are good, you will pretty much use the current ATR value as the profit target. And for the stop loss, you will double the ATR value. That is the largest stop (the catastrophic stop). The goal, of course, is to get out at profit. If a loss occurs, you hope to get out at a smaller profit, breakeven, or a smaller loss (using whatever stop strategy comes into play first).