How to Use Price Action to Identify E-mini Trends

One of the biggest ways to “win” in day trading markets is to correctly capitalize on trending days. If you are lucky and confident, you can place a trade before the trend takes off, then ride the trend up or down and get out at a big profit. For this, you have to:

Enter early at the right time
Be correct regarding the direction (i.e. up or down, long or short, buy or sell)
Have a stop loss large enough so that regular price fluctuations won’t hit it and cause a premature exit (and loss)
Have a profit target large enough for the trend to eventually hit that and cause significant profit
Get out at the right time

Of course, there is much that can go wrong. For instance, you can buy instead of sell, anticipating the market to turn around yet you keep getting deeper into loss territory to a point where you wondered why you had a trading account to begin with. Hopefully, that never happens to you and you always trade with money set aside for high risk trading.

There are some trading systems out there that are meant to be traded only on trending days. But it is easy to think a day is trending if the market opens and goes up consistently for 20 consecutive minutes. Does that mean it will continue to do so into the early afternoon? There’s no guarantee. Is the move over? Could be. There’s no guarantee. The market can reverse at any moment. This is a reality of trading and something you have to be comfortable with. As a trader, you have to understand that responsibly and reasonably dealing with loss is a part of the “job.”

This is why hedge funds and big organizations use trading algorithms. Sure, there is win potential associated with execution speed, but some of these algorithms undoubtedly incorporate some sort of predictive qualities. Yes, companies that have millions of dollars are trying to predict the market just like you. It is true that some outright manipulate it, but that’s another discussion altogether.

So, if these companies have invested big bucks in predicting the market, who can say that individual traders cannot have any success with predicting the markets? This is why you see so many trading systems that exist. Yes, some will be more successful than others. Some will do better on trending days than others. Some will easily get “confused” in choppy conditions.

Hopefully, the video above has helped you understand how DayTradeToWin approaches trending markets, especially the E-mini S&P. The Atlas Line, ATO 2 and Trade Scalper can be used as predictive tools (though there is no guarantee they will be correct).

Finding Trends and Counter-trends Using Price Action Roadmap Software

Do you know what the market is going to do next? Wish you had a guide to avoid those “bumpy” movements? That’s why DayTradeToWin.com created the Roadmap trading method/software. There’s one big thing most day traders want all the time. That’s a clear direction on where price is expected to go and price levels where price is expected to change.

The Roadmap provides this information on the chart in the forms of both signals and “zone lines” The zone lines identify points where the buying and selling is expected to cease or change in some way, so at these points, you may see price reversals or strong continuation up or down through, depending on the type of zone. This is why you can also find entry opportunities as price moves from zone to zone. Indeed, the Roadmap is a truly versatile trading indicator.

In this video, you can see how one of the zone lines served as a visual indicator for the upper boundary of where price is traded. It is as though the Roadmap “knew” ahead of time of a certain limit. Looking at these various zone lines on the chart, you will see again and again many such coincidences.

John Paul from DayTradeToWin.com explains this trading method in further detail. So how does one get the Roadmap? You have to enroll in the eight-week Mentorship Program. The Roadmap is one of the key methods in Mentorship. When you combine it with the Atlas Line, you esentially have 2x filter systems with 2x signals. Then when you combine it with the Trade Scalper and other systems, you have a full trading plan no matter what the day throws your way.

How to Forecast Price Action in 2021

Do you want to learn how to predict where price may go in 2021? Look no further. We will teach you a full trading method for free in this video. Historically, John Paul says this technique has been 90% accurate. You can see for yourself in your charting platform of choice. Once you learn the technique, go back multiple years and see if the predictions came true.

This price action technique is called the January Effect, right now, we’re at the end of January, 2021. It won’t be long before we have 100% confirmation on whether the January Effect will apply to 2021. If it does, then we can say 2021 will be an “up year.” In an up year, we can identify retracement opportunities, where price begins to “come back up” to a 50% level as measured from the previous high and previous low.

Once that 50% level is exceeded in a certain way, that’s an entry opportunity. Typically, many of these 50% retracement opportunities occur within the year. In fact, it is possible to take advantage of bearish movement intraday. That’s good because many traders are not equipped to hold positions overnight and for days on end. Intraday means you can be in and out of a position the same day. This is what the DayTradeToWin trading methods mainly look for, as taught in the 8-Week Mentorship, Atlas Line, Trade Scalper, ATO 2 and many other techniques.

By all means, please watch the video to get a better understanding of how it all works. What we’re looking at right now is what the closing price of the E-mini S&P 500 will be at the end of January. We’ll have to be in February to make that determination. January 31 happens to be a Sunday, and the markets are open Sunday evening US/Eastern time. It is doubtful that price will make a huge drop on what is often observed as restful or recreational day. By Feb. 1, 2021, price has to be at 3653.25 or above for 2021 to be an up year. Currently, price is about 200 points above that, so that would be quite the market drop in a week or so.

This is just one method to forecast the market. For traders who do not have many thousands of dollars, you can use the Atlas Line and other tools as intraday forecasters. A forecast is a forecast; there are no guarantees price will do what is predicted. It’s almost like the weather; at least once, I am sure most of us have experienced rain on a day that was forecasted to be clear and vice versa. Hopefully this free trading method brightened up your day!

It Happened as Predicted: Big Sell-Off Jan. 4, 2021

Remember that recent post where John Paul from DayTradeToWin.com predicted a big sell-off would occur in early January, 2021? Well, it happened! As shown in this video, you will see how much price fell. One headline says the Dow dropped over 500 points. That is significant. How did John Paul know this? Years of analyzing and trading the markets. This is one of the reasons why he is sought as a pro trading coach via the 8-Week Mentorship Program.

This may not be the only big sell-off in January. We have vaccines rolling out, alleged shortages, possibly new and more communicable viral strains, a pending presidential power transfer, pardons, and all sorts of other dramas occurring. In prior times, some of today’s the daily headlines would have been cover stories for weeks. What times these are! And what markets these are! That it why it is so important you have a plan for day trading.

In the above video, John Paul shares his approach to trading the big sell-off. A sell-off can be a single or multi-day event. In either case, it is possible to use a day trading system such as the Trade Scalper to find potential winning moves. The Trade Scalper works best with a 1-Minute chart. Signals appear according to price action. If price movement, over a given period of time behaves in a certain pattern, then a signal will appear. That signal may be long (buy) or short (sell). It is then up to you to place the trade according to the rules that you are taught. The technique is fully explained in the materials provided after purchase.

DayTradeToWin.com teaches how to use the ATR (Average True Range) to gauge recent market conditions and adjust the profit target and stop loss (essentially, reward and risk factors) according to what is potentially possible for the given moment. John Paul believes this allows for more realistic, safer trading.

He’s been offering his price action methods and occasional public market analysis videos for over 10 years. Very few, if any trading business, has hundreds of videos showing their methods working over such a long period of time.

Pro Trader Predicts Big Sell-Off in January 2021

Within the last month, a couple of predictions have emerged regarding how they market will be in early 2021. John Paul, founder of DayTradeToWin.com has said that he expects a big sell-off to occur in early January 2021. Below, you will find two more videos mentioning this prediction.

What is a sell-off? It’s a sustained period of bearish activity. In other words, a “great fall” in the markets. It’s not exactly a crash. A crash implies less control (i.e. a disastrous free-fall), whereas a sell-off is more of a series of thoughtful actions or consequences via controlled market mechanisms, trading, or business strategy.

John Paul says it is possible for regular “intraday” traders to capitalize on the anticipated sell-off, providing they have the right signals and trading systems. He points to the DayTradeToWin Atlas Line and Trade Scalper software specifically for finding short (sell) trades during a sell-off. Recognizing a sell-off can add an additional level of confirmation. And as a trader, are you not always looking for an extra indicator of confidence?

In the December 31, 2020 trading video above, you can see how the Atlas Line helps confirm anticipated price direction and can lead to profitable trades. Though there is inherent risk in trading and hypothetical performance is not indicative of future results, you can get a sense of how the signals appear to inform traders of a potential favorable condition in the near future. For instance, in the thumbnail image, you can see how there is an Atlas Line Long (buy) signal. Price continue moving up afterward. This should have led to a reasonable profit target being hit, thus a profit.

Normally, trading New Year’s Eve and Christmas Eve is best avoided. These are times to spend with family and friends. And if you must trade, because the big players tend to be away, there may be unusually slow periods. When these slow periods occur, the market can suddenly chop back and forth without any clear direction. This makes it extra difficult to trade. Fortunately, trading systems such as the Atlas Line and Trade Scalper can add “clarity.”

If we go further back in time, we see another video where John Paul predicts a January 2021 sell-off. What is your opinion? Do you think it will occur? There may be many headlines as we switch from one U.S. president who has been quite controversial to another, who also is involved in some controversy. We’re living at an unusual time where the world is trying to mitigate a contagion. This has set up a number of complexities at a time when the greatest number of people on earth exist, where all sorts of organizations, companies, and governments want to prosper, which can be disadvantageous to various populations, some of which do not have the means to grasp any portion of the picture. Also, there is the mindset of going into a new year and expecting change. Maybe that will happen. So when it comes to the markets, we have so much reason to expect some turbulence.

Big E-mini Price Drop Expected in Early 2021

Are you ready for the anticipated early January 2021 sell-off? John Paul, founder of DayTradeToWin, recently posted a prediction that a significant amount of bearish activity is expected with the E-mini S&P. The video below explains further. Using the DayTradeToWin.com indicators (ATO 2, Trade Scalper, Atlas Line, etc.), you should be able to find intraday selling opportunities during the expected sell-off week or two. For example, the Atlas Line can help determine if the day is expected to be a “down day”. If so, look for short signals on your other systems, such as the Trade Scalper. By all means, let a few days provide to you that you are seeing the sell-off.

Does this mean that 2021 will be a down year overall? Absolutely not. This prediction is to be fulfilled by another method John Paul teaches publicly, the January Effect. The January Effect for 2021 will be known February 1, 2021 after the full month of January has plotted on the chart. You see, if January 2021 closes higher than it opened, we can also expect the year to mimic this pattern. Therefore, the January Effect says, December 2021 will also close higher.

As to the causes of the sell-off to possibly come: hypothetical COVID-19 waves or mutant strains, new tax laws/policy, outgoing and incoming U.S. president actions, unprecedented Q4 2020 retail performance numbers, etc. There are many reasons while price could drop and continue to do so for days. If the January Effect is active for 2020, then yes, it is possible that the recovery of the market could occur through February, but John Paul believes the drop could be rather short with January 2021 reaching new highs by the end of the month.

Not every trader can afford to swing trade. Swing trading is often considered holding a position overnight or multiple days. There is increased risk in doing so. But often with increased risk comes the potential of increased reward. If you have a modest account size, looking for intraday shorts may be your best bet. This link may help you find the best day trading system for 2021.

What Successful Day Traders Do to Prevent Risks

Has the following ever happened to you? You get a signal from your trading system – it’s go to long/buy. Now, you quickly have to place a trade. Fumbling, you click the wrong order type or put too much risk on the trade. If you cancel your orders and resumbit them, that means “back of the line” and you may not get filled. If only there was a way to reduce the headache and streamline the placement of orders!

…Well, in NinjaTrader 8, this is possible. We are big fans of the ATM Strategy feature in Ninja’s trading platform. The above video covers just about everything you’d want to know about how to configure an ATM Strategy. Of course, the video does not go into detail about what profit target and stop loss values you should use. That’s going to be up to you because you may be using a different method than the next person and so on. Therefore, it may behoove you to set up ATM Strategies pertinent to common scenarios you find yourself in.

With day trading systems, it is common to go for a certain amount of ticks or points. If your trading system is based on price action, you may use a dynamic (changing) value for the profit target and stop loss. That’s what they teach over at DayTradeToWin.com. As such, consider what your trading coach or course says. Configure the most common profit targets and stop losses according to the instructions.

If you prefer NinjaTrader 8’s Chart Trader rather than a SuperDOM, you can select preconfigured ATM Strategies from the same style of drop-down. Remember, to configure them, select Custom, which will bring up the configuration area. It’s also important to using a naming scheme that alphabetizes the various ATM Strategies. For example, “P4S8” describes to your mind a profit target of four ticks and a stop loss of eight ticks. A variation could be “P6S10” and son on. Get it?

So, hopefully we resolved some of your nervousness when placing trades. How does Benjamin Franklin’s expression go? ““An ounce of prevention is worth a pound of cure.” Successful trading is as much about risk management as it is finding winners – and sometimes, even more!

See What Happened With This Student’s Real-time Scalping Trade

The support team at DayTradeToWin.com occasionally receives charts and videos from students/clients who use the ATO 2, Trade Scalper, Atlas Line, and other price action trading methods. When such media is shared, it’s easy to point out any mistakes being made by the trader. This is what happened here – a video from a student was provided. For the benefit of all, John Paul, founder of DayTradeToWin, provided commentary and described what he would have done differently.

The highlight of the video occurs around 1:43. That’s where the student places a real-time Long (buy) order based on the advisement of the Trade Scalper signal software. The historical data shows that multiple trades can occur intraday. In most cases, you won’t be holding a trade more than four or five candles. Remember, holding onto a trade longer only guarantees risk. The goal is to minimize risk and focus on signals that have the greatest chance of providing profit.

Of course, no trading method can guarantee profits. If that was the case, the trading method would have been made secret with its proprietors silenced, for they have figured out how to foresee the future, some pattern in nature, or mass scheme to make the data seem random. What a novel that would be!

Back on topic, the idea is to make the futures markets accessible to beginner traders. DayTradeToWin provides throughou details and multiple how-to tutorials/guides on almost every aspect of NinjaTrader. That’s why they’re a great resource for all experience levels. There are many veteran traders who switch over to NinjaTrader and can’t figure out the platform. After an hour-long tutorial video from DayTradeToWin, they’re up and running with a basic understand.

Is It Possible to Have a Career as a Day Trader?

There are so many day trading systems out there claiming to be the best. If you do a bit of research, you may see some of these organizations making big claims or promises have only been around for a short period of time – nowhere near the 10+ years DayTradeToWin.com has. If you take a look at all the new trading videos on YouTube, you’ve probably seen many rags to riches stories. Is it really that simple? Be careful to not subscribe to a personality; the methods have to work. Period. Do these other people have videos going back 10 years demonstrating consistency? Very few, if any do, with the exception of DaytradeToWin.

…Here’s yet another demonstration of success. Keep in mind, trading should only be done with designated risk capital; not one’s rent money, grocery money, child support money, etc. If you’re in that desperate of a situation, we sincerely wish you the best with a more conventional form of employment or other means of fortune/sustenance.

Even if you have stacks of cash serving as improvised furniture because you don’t trust the banks and physically want to see your money every day (a ridiculous and hopefully humorous picture that hopefully drives home the point), you should still practice first. NinjaTrader and other platforms have really honed in on creating a practice environment that replicates the trading experience closely. In fact, simulated trades in Ninja sometimes aren’t filled – just like the real thing!

If you were to purchase the Trade Scalper and Atlas Line, the configuration of each is relatively straightforward. You’ll have signals just like those in the video above: short, long, etc. It’s up to you to place the trade. The systems don’t go as far as trading for you. Why’s that? Because it’s better if you’re in charge rather then entrusting some code to not sabotage your trading account. If you look hard enough, you can probably find some horror stories of traders who had too many orders placed otherwise subjected themselves to too much risk because of a robot’s algorithm. DayTradeToWin.com has always preferred to put that power in your hands, the human trader, who may have some discretion though the methods/rules are objective.

Best Trading Conditions: $100+ Per Trade Possible?

Market conditions don’t always allow for $100+ per trade. The 2020 Election and whatever else impacts the markets has increased the volatility. Does that mean you should abandon rationality to make some big money? Of course not. In fact, we’ve been saying for a while now that it’s best to use a 1-Minute chart instead of a 5-Minute chart as well as continue use of the ATR (Average True Range) to determine tradeability.

The recent January Effect video shows there are many great long trades. But what about those inevitable intraday price drops? What do you do with those? As seen in this video, the Atlas Line and Trade Scalper day trading signal systems have been effective in finding winning opportunities…

The real-time trade was worth +2.25 points. That’s nine ticks at $12.50 each, thus $112.50 with one contract. That may not seem like much, but if you have multiple winning moves per day and can afford to trade multiple contracts, there may be enough profit for you with commission covered. Let that be no indication of guaranteed performance. We have to state everything is hypothetical to comply with regulations.

NinjaTrader was designed with the intention of replicating conditions as closely as possible to live trading. In fact, when sim trading, you won’t be filled every time – just like in live trading. When practicing, you may want to limit the simulator account to less than the original amount of $100,000. Maybe drop that to something more reasonable like $5,000. This way, you can use the Trade Performance tool to get a sense of how it goes with the Sim101 account over a period of time. If that works for you consistently enough, consider trading with a live account and start off slow and carefully.