Day Trading Indicators – Atlas Line’s 5 Winners

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).

Trading School – 8-Weeks of Coaching

Day Trading SchoolA new Group Mentorship class is set to begin Jan. 31, 2018. What is Mentorship? It’s an eight-week trading school where you can learn about 10 different ways to trade popular markets, including futures markets like the E-mini S&P. John Paul, the founder of DayTradeToWin.com personally teaches each of the classes. The live training sessions are conducted in an online webinar room. In the room, you can see John Paul’s trading charts as he teaches each of the strategies. By the end of the eight weeks, the goal is to have a complete understanding of all the strategies and how they work together to form one complete trading plan.

Mentorship takes a different approach compared to other online trading schools. For starters, it’s an all-inclusive program. There are no hidden charges. Typically, you pay for the course via three payments and that provides access to all of the training and downloads. If you want to use the NinjaTrader platform and trade with real money, you will need to have to buy a license from NinjaTrader and fund an account with a broker that is compatible with NinjaTrader. DayTradeToWin.com can assist in providing a complete practice environment in which you can simulate the live trading experience.

Although the course downloads are provided for NinjaTrader only, many of the methods will work with other platforms. For most strategies, the rules are fully explained. You learn how to find the trades according to price patterns, what profit target and stop loss values to use, and how to manage trades. By using an understanding of price action, you can manually trade on other platforms without the aid of signal software.

This Trading School Offers:

  • ATO 2 course and software
  • Price Action Scalping course and software
  • Trade Scalper course and software
  • Atlas Line software
  • Roadmap software
  • Blueprint method
  • ABC software
  • Trading the news method and news event software
  • X-5 method
  • Yo-Yo method, Stair Step Method, Trailing Stops, Filtering Trades, and much more
  • All classes are recorded and posted online in your private account for future playback
  • Email support
  • Optional remote support for installation and configuration of course materials

The testimonials page has dozens of written statements from traders who have used DayTradeToWin.com products over the years. DayTradeToWin.com has stood the test of time as a reliable trading school / online educator. If you have already purchased the Atlas Line, Trade Scalper, ATO 2 or another product, you are entitled to a discount for your prior purchases.

Trading Holidays Coming Soon in 2017

Day Trading 2018With 2017 coming to a close and holidays up ahead, it’s important to be aware of upcoming trading holidays. The CME (Chicago Mercantile Exchange) website has all of the information for upcoming closures. Did you know that the market will close early on two consecutive days for the Thanksgiving holiday? Will you be able to trade on Veteran’s Day? Let’s take a look at what the CME says. The hours posted here apply to CME equity, interest rate, FX, energy, metals, and DME markets. This includes the E-mini S&P.

Firstly, the times below are provided in US/Eastern (ET) format. On Nov. 5, clocks in the U.S. will “fall back” an hour, making you feel like you had an extra hour of sleep and more daylight at the end of the day. In effect, US/Eastern time switches from GMT-4 to GMT-5 (or UTC-4 to UTC-5, if you prefer that labeling).

Also, note that on some holidays, the markets reopen in the evening the same day. Generally, market activity is much slower around big holidays. It’s probably best that you stay out and wait for normal conditions to return. Use an ATR with a period value of four.

Additional Trading Holidays

The next major holiday is Veteran’s Day, Nov. 10. The markets will be open normal hours. No closures or odd market hours.

After that, Thanksgiving Day falls on Thursday, Nov. 23. On Thanksgiving Day, the markets close early at 1:00 p.m. ET. On the following day (Nov. 23, a Friday), the markets will also close early, but at 1:15 p.m. ET.

Next, we have December. As you probably expect, the markets are closed Christmas Day (Dec. 25). The markets reopen Christmas Day at 6:00 p.m.

New Year’s Eve is a Sunday. New Year’s Day, Jan. 1, 2018, falls on a Monday and the markets will be closed. Markets reopen at 6:00 p.m. that day.

This trading calendar for 2017 should fill in the blanks for any additional days.

24-Hour Time Basics for Day Trading Charts

If you’re going to be trading, you’ll probably encounter the 24-hour time format. Many folks in the U.S. are not familiar with reading 24-hour time. Instead, we frequently use regular time, which may seem even crazier. Regular time splits the day into two 12-hour sections. In each section, we count from 12:00 to 1:00, then from 1:00 to 12:00. To someone from outer space, regular time may seem more difficult than the 24-hour format. After all, in the 24-hour format, all you are doing is counting from 00:00 (midnight) to 24:00 (midnight again) for each hour of the day.

NinjaTrader uses 24-hour time for its charts. Currently, there is no way to get around that. Until you reach a point where 24-hour time is second-nature, you’ll have to learn how to do some mental math or memorization.

24-Hour Time Tips

  • There is no need to do any conversion, as 24-hour and regular times will be the same for times between 1 a.m. and noon, e.g. 1:00 on a 24-hour clock is 1:00 a.m. on a regular clock.
  • After 1 p.m. regular time, to get the regular time from a 24-hour time, subtract 12. For example, 19:30 – 12 = 7:30 p.m. regular time.
  • Confused if 00:00 and 24:00 are the same? You should be. Many 24-hour clocks consider this the same time (midnight).
  • Time zone conversion will still work the same way. Add or subtract the time difference as you normally would.

Want to learn how to read a 24-hour clock faster? Get a wristwatch that has both formats or change your smartphone’s time display. If you have more questions, check out this helpful website and the pictures below.

24-Hour Time Chart

24-Hour Time Clock

Day Trading Strategies for Beginners & New Traders

Webinars are one of the best ways to get a feel for how well a person’s day trading strategies work in live conditions. Occasionally, DayTradeToWin holds live webinars to provide just that, as well as educate attendees on a variety of topics. Just recently, John Paul conducted a live webinar and showed his ATO 2, Trade Scalper, and Atlas Line trades to a room full of traders.

For gauging a market’s tradability, knowledge of the ATR (Average True Range) is essential. Set your trading platform’s ATR setting to 4. When the ATR is between two and four points on the chart, trading conditions are ideal. However, an ATR above 5 points or below 1 point means the market is too fast or too slow, respectively. Slow conditions are also apparent when many dojis or short candlesticks appear on minute-based charts. Keep in mind, the ATR is always looking back at the last 4 bars (using our recommended setting), so it is not an indication of future levels. Once you place a trade, you can continue to monitor the ATR and adapt your profit target and stop loss based on your ATR-based strategy.

Ever look at NinjaTrader’s SuperDOM and wonder what all those buying and selling numbers mean? In the webinar video, you can gain an understanding of this so-called Level II price data. For a historical interpretation, check out NinjaTrader’s Times & Sales window. Note that with most DayTradeToWin strategies, we avoid interpretation of buying and selling numbers. In the old days of trading, these numbers were more useful. High-frequency trading and other changes have made our price action approach different.

One of the great new features of NinjaTrader 8 is the ability to place MIT (Market If Touched) orders. Consider the literal interpretation of “Market If Touched.” One could say that if your order is touched by the current, fluctuating market price, then you enter the trade at market value. MIT orders are useful in preventing slippage, which is when a tick or more of potential profit is lost due to unfortunate market conditions. The webinar video also explains limit orders, stop orders, and other helpful order tips.

More Day Trading Strategies

John Paul also touches on the topic of front-running. If you Google that term, you’ll probably come up with an explanation of dirty tactic employed by unscrupulous brokers. That is not what John Paul refers to. Instead, his meaning refers to getting filled a tick ahead of the desired price. It’s a tick less of profit, but it can be the difference between having your stop loss hit. You probably would not want to front-run scalping trades, because you’re only going for a couple of ticks. It’s probably better to front-run in trades when you’re going for a point or more of profit.

Aside from the other day trading strategies, it’s also important that you stick around for the part where he discusses closing out trades. Of course, not every profit target will get hit. You should know how to manually close out a trade in order to reduce excessive loss. The DOM has two buttons designed for that purpose. Be sure to watch John Paul’s specific approach based on years of looking at the markets.

How to Place Trades in NinjaTrader 8 SuperDOM

Use NinjaTrader? You will have to know how to place trades. The SuperDOM is what we use. In other platforms, it’s called a price ladder or a matrix. Think of it as a remote control for the market. You can place different types of buy and sell orders. Open a SuperDOM window via NinjaTrader’s Control Center > New > SuperDOM (Dynamic). You should then see the SuperDOM. With the SuperDOM window now visible, you must make one very important adjustment: select the instrument you want to trade. Normally, the instrument you select (e.g. ES 12-17) should match the chart you’re looking at.

There are three types of orders that you’re probably going to use. The most common will probably be Market Orders. These orders are placed at the current market price (whatever the market is currently trading at) and can be placed long or short (buy or sell). On the SuperDOM, the current market price has a yellow highlight. Note that the SuperDOM has two columns: a buy column on the left and a sell column on the right. At the bottom of each column, there is a Market button. Click this button to place a corresponding Market Order.

Limit orders are the next order type. Think of this type as saying to the market, “I want this price or better.” There are specific rules for placing limit orders. If you want to place a buy limit order, you can only place the order below where price is currently trading. Left-click the price you want in the buy column of the SuperDOM below the current market price. If prompted, click Yes to accept the order. The same approach works for placing sell limit orders, only you will need to place them above where price is currently trading. After placing a limit order, note how “LMT” appears on the SuperDOM to indicate the type of order in play. If price touches your limit order, there is no guarantee that you will be filled. If price goes through your limit order, then you should be filled.

How to Place Trades Using 2 More Order Types

The next common order type is a stop order. A stop order is almost like the opposite of a limit order. Place a buy stop order above the current price you want to buy at. Similarly, place a sell stop order below the price you want to sell at. To place a stop order, click your middle mouse button on the desired price in either the buy or sell column. A little popup will appear, that lets you specify the limit (effectively making your order a “stop with limit” order), which indicates the amount of slippage you are willing to accept. If you leave the value at 0, then you are not willing to accept any slippage. If you set the value to 1, then you are willing to accept 1 tick of slippage. Stop orders can also be used as a protective measure to get you out at a specific price. Refer to the video for more information. If you hold the Ctrl key on your keyboard and use the middle mouse button click, a regular stop order will be used.

Lastly, the video discussed MIT (Market If Touched). MIT orders help ensure a fill when price touches a desired price, instead of going through. An MIT order is placed as a limit order, which then becomes a market order. To place one of these, use the Ctrl key + the left mouse button.

To learn how to place trades, be sure to watch the video in its entirety because there are a number of important tips at the end. See more trading videos here.

Profit Targets and Stops – January Effect

Do you recall John Paul’s predictions from earlier this year? He said the E-mini S&P would go up by the end of 2017. Look at what’s happened so far. The E-mini S&P has reached all-time highs! This video summarizes the January Effect trading strategy as well as an approach to finding additional opportunities in the next couple of months. You’ll learn enough to know where to place those profit targets and stops.

In short, the January Effect works like this: if the month of January closes higher (usually January 31) than the price when it opened (usually January 2), then you can expect to also close higher in December of the same year. Of course, any trading method is subject to fail with a significant financial loss, so only trade with money you can afford to part with. In most cases, price rises consistently throughout the year, which provides many entry opportunities. If your brokerage account allows, you can ride the price up, hopefully to profit territory.

How Do You Place Your Profit Targets and Stops?

The January Effect entries require a bit of understanding. Firstly, you have to wait for price to drop. This will need to occur for a few days. Then you’ll need to see price begin to head back up for about six or so days. Use the Fibonacii tool and configure it to show three lines: a line at 0%, one at 50%, and the other at 100%. This helps because to can accurately see the halfway point between two price values. Apply the Fibonacci tool to the retracement. Wait for price to pass through the 50% with momentum and you have yourself an entry. To know when to get out, watch the video.

This is just one of the many trading methods John Paul will touch on during the next eight-week Mentorship Program. You will learn all of his trading strategies. By the end of the eight weeks, you’ll have a complete understanding. All courses and software are included with lifetime licenses. It’s one of the best deals for personal coaching (with solid, unique methods) available today.

Trading Systems for 2017: ATO 2 and Atlas Line

Two of the best trading systems for 2017 are the Atlas Line and ATO 2. John Paul’s recent webinar taught traders how to handle slow market activity often seen during summer months. As we head into late summer, we’ve fortunately seen an increase in volatility. The ATR (Average True Range) is used as the indicator of volatility, with a range of 2 to 4 points considered good for trading. We’ve seen a few days lately where it’s reached around 3 points. Faster markets mean more potential, which means larger possible profits (and losses). Take a look at this ATO 2 trade in this video, for example.

This trade was taken at the end of a live webinar. You can hear John Paul answering questions from one of the attendees. The ATO 2 trade can take up to twenty minutes or so. That’s why the video was sped up. If price did not reach the profit target, one of the stop strategies would have been used, such as a 20-minute time-based stop. Let’s say price suddenly dropped away from the profit target. That’s where the catastrophic stop is used. It’s a safety net for sudden and significant loss. This trade was worth +2.25 points, equivalent to $112.50 per contract on the E-mini S&P.

The DayTradeToWin.com website has a free trading downloads section that contains many useful links. You can download the NinjaTrader 8 trading platform, a free news indicator, and time sync software to keep your computer’s clock in check.

What about the Atlas Line? Let’s jump to early in the webinar. The Atlas Line produced a short signal at 2459.25. This signal appeared because of two closing candles below the dashed blue line. If price produces two closing bars above the line, a long signal will appear. Notice how this trade appeared soon after market open. The ATR is above 2.5 points. For the additional Strength and Pullback trades, look to see if the market is overbought or oversold. Look at the 10:05 a.m. Strength signal. Even though it worked out, John Paul believes it was riskier because the market was more oversold.

Trading Systems for 2017:  Atlas Line

The Atlas Line can produce two or more trades per day. When factoring in the Strength and Pullback trades, you have plenty of opportunities. Pick the best. There’s no need to chase the high-risk trades. At about 22:00 into the video, follow along and try your hand at guessing the profit target. If the target is touched, then you may want to close our of the trade. You can close out at market or use an MIT order (market if touched). Because this was 2+ point trade on a Friday, it’s better to be more conservative. Exit the trade. If you lose a tick, it’s not a big deal.

The Mentorship Program is the best way to get the ATO 2 and Atlas Line in one package. In fact, you get over 10 strategies with lifetime licenses. We have new classes that begin all the time. The next one is August 28. Click here to check out the details. Classes are twice a week in a webinar room. You can see John Paul’s charts as he explains how to find trades. The goal is to have you learn, not blindly follow a trading room or an indicator.

Summer Day Trading Defeated Using January Effect

Summer day trading is known to be difficult. People take time off. The markets traditionally lose volatility. You’ve seen what happens during a Friday holiday. In the summer, can we see the ATR (Average True Range) below one point regularly and for larger portions of each day. How do you combat this? Small-time retail traders need to think differently. John Paul from DayTradeToWin has an idea: go long-term.

If your brokerage account can substantiate the extra risk involved in holding large positions for multiple days, it may be worth taking a look at the January Effect strategy. The January Effect can best be described as a predictor for how price may behave for the rest of the year. The prediction is based on how price behaved in January of the same year. If you see that price closed higher than it opened for the month of January, then expect the end of the year to also end on a high note. Of course, there’s no such thing as a true prediction. John Paul believes in this strategy’s accuracy, but you should do your own testing and come to your own conclusions.

How do we know when the January Effect will apply? Early February, of course. From that point forward, you can follow the rules to spot bullish retracement trades. The video demonstration is better, but essentially, you’re looking for price to drop. Once the bottom is reached, wait for the 50% recovery and then look to enter a bullish trade. You can find one of these setups almost every month. There’s no guarantee of profitability. Price may turn around and continue lower. Be sure to test with a practice simulation account first. Also, check with your broker and a financial expert.

Beyond Summer Day Trading

Other than summer day trading, John Paul discusses a number of other tricks to possibly improve performance. He talks about groups of days, trending days, and how to spot cycles. He discusses why 5-min charts are superior to most others, the ATR (Average True Range), and much more. To learn everything he knows about day trading, join the next eight-week trading class, Group Mentorship. All trading courses and software are included with lifetime licenses. It’s a great deal.

Free Trading Strategies: January Effect

One of DayTradeToWin.com’s most popular free trading strategies is the January Effect. Just look at the winning possibilities within the last few months:

  • March 2017: +18 to +40 points
  • May 2017: +18 to +30 points
  • June 2017: +17 to +24 points

Will July 2017 produce similar big winning trades? John Paul provides his prediction in the video below.

What is the January Effect? Firstly, remember there’s no such thing as an accurate trading prediction. The market activity is anyone’s guess, so trade at your own risk. Consult with a licensed broker and financial professional before considering trading, especially when holding high-risk trades for multiple days (as described in the video). John Paul believes the direction of the market for the overall year can be predicted based the market’s behavior during January of the same year. For example, because January 2017 closed higher than it opened, he believes December 2017 will also close higher. From there, it’s a matter of finding additional entry opportunities throughout the year.

How to Find Retracement Opportunities

To find those additional trades throughout the year, John Paul looks for periods of downward movement. When price retraces upward, climbing 50% back up to the previous high, that’s the January Effect entry point. How do you know where the 50% point is? Sure, you can eyeball it. John Paul prefers using NinjaTrader’s Fibonacci tool. However, he’s not using it in a typical way. For the January Effect, only values of 0%, 50%, and 100% are visible. In a previous video, we recovered configuring the tool. Free trading strategies and tools are a primary focus of DayTradeToWin.

To discover more ways to trade the E-mini and other futures and currencies, participate in the next eight-week live trading school, Group Mentorship. John Paul reserves his most powerful strategies for this all-inclusive program. Yes, all courses and software are provided plus eight weeks of live training with a pro. All lessons are recorded, so you can play them back in the future.