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.