Why would you want to trade futures in the afternoon when the morning is said to have the best opportunities? Because still more opportunities exist in the afternoon. Perhaps you were busy in the morning or sought to recover from a couple of trades that didn’t go so well. Revenge trading or any type of emotionally driven trading is discouraged. Rather, sticking to objective rules ensures that one can more easily measure the success of an approach over a given period.
The ABC Method was designed for afternoon trading. Multiple entry opportunities can be found in the afternoon before market close. However, some days there are simply no signals. Trending days tend to trigger ABC entry opportunities. That’s because the ABC is a breakout method. If price exceeds the prior period’s high and low via two closing candles, then expect a signal in the new period. That means only periods B and C yield entry opportunities. period A merely establishes the high and low for a possible entry in period B.
It’s important to remember the first two periods are 2.5 hours in duration. The A period begins at market open, 9:30 a.m. If this sounds like too much work, you may consider the ATO 2 method which includes the ABC Indicator. Another option is the 8-Week Mentorship Program. With the latter, all courses and software are included with Lifetime licenses.
If you want to see these signals live, sign up in one of the forms on the DayTradeToWin website. Every few weeks, an invitation is sent so that new people can compare their live charts with John Paul’s to see his methods are for real.
Advanced traders are encouraged to watch these videos as well. DayTradeToWin has taught thousands of people about trading using price action. There’s no doubt some of these people are advanced traders. In fact, some of the DayTradeToWin testimonials say that success was finally achieved after many years of trying various types of systems. Does that sound like you? They’ve also helped people who have never even looked at a trading chart for more than a half-hour. And if you’ve had some time to get familiar with charts and trading, but do not consider yourself a pro, then there’s much to learn as well. You see, the approach John Paul, founder of DayTradeToWin, takes is much different than anything else out there.
Here we have his latest price action webinar split into two parts. He begins by discussing his general approach, risk management and what price action means. The ATR (Average True Range) is the indicator that dictates much of his trading. For just about every trade he takes, he looks at the ATR to determine the profit target and stop loss. You can think of the profit target and stop loss as the reward and risk potential, respectively. In the NinjaTrader chart, the ATR typically appears at the bottom. John Paul has thickened the line and changed the color to a yellowish gold.
The Long and Dbl Wick Long signals that you see belong to the Trade Scalper indicator software. There are different price options for the course and software: 6-Month or Lifetime. If you’ve been following John Paul for some years, you may be ready to jump into a Lifetime license. If you’re just getting your feet wet, by all means, consider a 6-Month License. Toward the end of this first video, he explains what counter-trend trading means.
Moving forward, we continue with John Paul’s explanation of counter-trend trading. He discusses more price action dynamics then goes into overbought and oversold market conditions. This is similar to the large candle explanation he gave in another recent video.
There’s also some time spent scrolling through the charts, so you can see all of the recent Trade Scalper signals: good and bad. He readily points out a Long signal that wasn’t so great, as the market soon turned around. To mitigate against some losses, he recommends using three different stop strategies: a time-based stop, a prove-it stop, and the catastrophic stop. The catastrophic stop is used as safety net and is the default stop applied when he places a trade using an ATM Strategy. If the trade doesn’t go well, he can try to lock in profit or close it out according to the other two stop loss rules.
Want a review of the DayTradeToWin Trade Scalper, Atlas Line or other signals? Watch this video to see real-time conditions. This webinar was recorded live. There was no filtering of signals. The signals on John Paul’s charts are the same as you would see them if you used the same configuration. The main focus is the Trade Scalper and profit-taking goals.
First, John Paul goes over his approach to risk management. He finds using the ATR (Average True Range) with a period value of four to be an accurate indicator of what price may do next. If you’re using fixed values, forget it. You’re eventually going to risk too much or too little going for that potential winner. It’s better to be adaptable and reasonable.
If you fast-forward to about 23:30, you’ll see how the morning started with an excellent Long/buy followed by an another excellent Short/sell. It’s quite possible that some people from the live room took advantage of those live “giveaway” signals and walked away with a profit! You can have the Trade Scalper signals running on your charts every day.
Right after the 23:00 point, John Paul explains the ABC method and gives an example of how it plotted recently. The video concludes with some discussion of order types and a review of price drop that occurred after the short signal.
Are you 100% sure that you’re using the best types of orders for your style of day trading? For example, if you’re scalping for a few ticks, you’ll want to use an order type that has decreased slippage because every tick is important. Slippage, extra risk, timing, etc. are all factors one must consider when using a specific order type. Many day trading platforms offer multiple order types, such as stop-limit, market, and MIT. Each order type has pros and cons.
This video is a detailed 45-minute presentation. You’ll see descriptions along with examples in the SuperDOM. Yes, you can use Chart Trader for order placements, but we prefer the more robust and professional tool for the job. However, a clear distinction must be made: Chart Trader also consists of the red profit target and green stop loss lines that appear on the chart. Therefore, Chart Trader must be enabled to see these lines, although the panel for order placement is not necessary. This setting, “Chart Trader (Hidden)”, is preferred. By the way, the Dynamic SuperDOM is preferred because the Static SuperDOM involves extra costs added due to its use and patent/licensing agreements with a third-party.
Throughout, you’ll see Short and Long signals from the Trade Scalper and Atlas Line. These are price action trading methods described in more detail at DayTradeToWin.com.
One common mistake when using a SuperDOM is not selecting the Instrument (aka market) or a mismatch between the selected instrument in the SuperDOM vs. the chart. Make sure they are one and the same. The SuperDOM’s display of the instrument’s real-time price (in yellow) should match the real-time price of the chart. Yes, if you want to observe and trade multple markets, have multiple charts with DOMs for the respective markets.
Here’s a question that may confuse you at first: what do you not know that you do not know about trading? The unknown may be your biggest downfall. In this two-part video series, John Paul from DayTradeToWin.com endeavors to clarify common trading misconceptions. The general approach is price action. This means letting a chart’s price movement tell you when and how to trade.
By using the ATR (Average True Range) as an indicator for volatility, profit target, and stop loss, you can mitigate some risk. How? The ATR with a period setting of four gives you a picture of the average price variation for the last 20 minutes when a five-minute chart is in use. If you use this value to determine each trade’s win and loss settings (profit target and stop loss), you can mitigate some risk compared to those traders who use large, fixed values. We prefer an adaptable approach because price is always shifting. Tune in to the first video at 5:50 for an explanation in conjunction with the Trade Scalper. If the ATR is above five points, that’s considered too fast. If below one point, that’s considered too slow. There are exceptions and ways to trade really volatile conditions. Those approaches have been shared in recent videos.
Do you know how to quickly measure the points and ticks between two points on the chart? NinjaTrader 8’s ruler tool is useful. Select it from the drawing drop-down (click the pencil at the top of the chart). Next, you’ll need to click three points on the chart. The first is the start point. The next is the end point. The last is the point at which you want the measurement to display. Practice by measuring the distance between candles. You can quickly determine price ranges this way.
DayTradeToWin offers a free trading news indicator. News events can take a trader by surprising and plunge them into big loss territory in a jiffy. Wouldn’t it be better to know when a planned news event is going to happen so you can stay out of the market? The news indicator plots upcoming, scheduled news events directly on the chart. You can customize the number of displayed events. You may want to change it to five or so as the default value can take up much vertical space with overlap.
John Paul expects the E-mini S&P 500 to go up overall during the remainder of 2020. He explains how to find long (buy) opportunities once price exceeds a specific 50% level. He explains later how this long bias can be used intraday in combination with other signals, such as those from the Atlas Line and Trade Scalper. Use a daily chart to see recent highs and lows. You can configure the Fibonacci tool to draw three horizontal lines. The middle line is the 50% line. Look for retracements above the 50% mark to previous highs. Watch for situations where the market may stagnate or pause for one or more months on approach to higher levels. The specific midpoint value is defined as 2,782.
Did you miss the live trading webinar video? As you know, most traders sit in and watch the signals happen in real-time. So, John Paul goes into the details and answers questions from the audience. Watch the replay below. The webinar, which took place on 22 November 2019, is recent. The presentation begins with a general description of John Paul’s markets.
So, if you missed the live webinar video on Friday morning here is your chance to review the trades taken, the questions and answers are given, and the explanations of the webinar for each trading were over an hour broken down into three parts.
This is provided for Part 1: Order forms, Phantom Orders, Live Market Scalper Orders, Questions, and Responses. While part 2: Phantom orders, Atlas Line Live Trade, Trade Scalper Live Trades, Filtering Trades, Q & A