Trading Predictions – January Effect & Atlas Line
Right now, it looks like the E-mini S&P is on its way up. John Paul says this with confidence because of his belief in the January Effect and its trading predictions. The January Effect is a predictive method for the direction of price throughout the year. Although there are no performance guarantees, John Paul believes in the method’s consistency. Because 2017 is considered an “up year” by the technique, traders can look for long (buy) trades when price begins to retrace to previous highs. This may seem difficult to understand, so take a moment to watch the video.
A new high was recently reached and price dropped soon after. Now that it seems price is moving back up again, we can use NinjaTrader’s Fibonacci tool to assist trading predictions and find the halfway point from the recent low to the recent high. This 50% level is the threshold for the entry. Once price surpasses that level, it’s time to look for entries. Some traders prefer to wait until price rises above the recent high, believing this serves for additional confirmation.
The January Effect says that 2017 will close higher. This means that price may continue to rise throughout November and December. It’s likely that price will also drop at times, which only sets up opportunities for additional January Effect trades.
Atlas Line Trading Predictions
If you are looking for intraday moves based on the January Effect, consider using the Atlas Line. The Atlas Line produces signals and estimates where the market will head on a given day. If the January Effect is telling you to go long and the Atlas Line is comparable, then perhaps it is wise to follow the compounding signals. At about two minutes into the video, you can see how the Atlas Line called out a nice big move before it occurred. Will we see more trending patters to the long side? We will have to listen closely to what the market tells us.
Interested in learning more? We have another eight-week trading school session starting January 21, 2017. All of our techniques are taught. You will get all the courses and software. Click here for details.