Are you just using one trading system? Sure, that can work depending on how reliable the signals are. However, for some traders, when they have significant money on the line, they like to get a second “opinion” from another trading system. DayTradeToWin’s John Paul often advises this approach, as demonstrated in his latest video. He’s showing a Trade Scalper scalping signal “confirmed” by an ATO 2 short signal. Both system are confirming the same anticipated market direction around the same time. Sure enough, the market drops soon after. Nice!
Get all three price action day trading systems here.
The ATO-C is the “Chaser” trade. It’s an optional follow-up signal you can use to potentially find another win or help recover from an earlier loss. Of course, as with any trade or system, there is a potential for loss, so be careful and read all disclaimers.
Later on, there was a third method applied. That’s the Atlas Line and it, too, gave a short/sell signal. While price remains below the blue dashed line (the Atlas Line), the idea is to go only with short trades. Can you see why the Atlas Line is one of the best day trading methods offered by DayTradeToWin in terms of filtering, confirming, and generating signals? It looks at the projected “big picture” for the whole trading day; not just the next 20 minutes. The line itself stays in a constant direction. At a given moment, you can see how far away price is.
Those at DayTradeToWin believe it is less likely for the market to move 10 points in a moment than it is one point, so the same theory can be applied to risk management in terms of the profit target, stop loss, and general trading considering the distance of the Atlas Line compared to the real-time price value.