John Paul talks about the news indicator at about five minutes in.
If you have a large, multi-monitor setup, one of your screens is likely dedicated to display news updates. Many traders prefer the Bloomberg or Forex Factory Calendars. While these are great sources, they require the trader to manually refresh the web page instead of focusing on a chart.
NinjaTrader users can now rest easy as a news indicator has been released. Day Trade to Win explains how the indicator works on their download page. In addition, watch the video above around 4:30 to see a live demonstration. Note how each announcement is color coded based on severity (ex. – red for high priority).
Identifying news events is important as many retail traders prefer to stay out of market several minutes before to 15 minutes after the announcement. News can result in volatility of unexpected direction. Positive news does not produce bullish price movement. The inverse is also inconsistent. A better way to trade news events is linked to on Day Trade to Win’s videos page.
If you’ve ever worked with multiple charts of different futures, commodities and currencies, you will see some mirroring of price. In other words, candlesticks will occasionally look similar across the ES, CL and 6E charts if a major news or financial event is occurring. This is true mostly for trends, as we cannot claim every bar is identical. A perfect example of this is shown above. The Atlas Line trading software is accurate in identifying trends before they occur. In the video, John Paul from Day Trade to Win shows the ES, CL and 6E and how the Atlas Line called for going Short prior to price dropping by a few points in each market. Keep in mind, you should be referencing the Atlas Line specifically for the instrument you are trading. We’ve heard of Forex traders who watch the 6E since the price action is nearly identical (only advantage is having a secondary reference / data feed / charting software that may offer different features from what you’re using to trade forex. Another interesting feature with this new version of the Atlas Line is the pullback and strength trades. Plotted on the chart as an S or a P, you can use these symbols for subsequent trades after the initial Long or Short. The Atlas Line is really the perfect system for handling multiple markets on the fly, as there is very little configuration (if any). NinjaTrader makes it easy to save indicator parameters, so if the ES is slowing down, you can open a CL with your custom parameters instantly.
My experience as a retail trader for many years has taught me there is a theoretical limit to how much we can hope to achieve each day on the markets. Unless you’re running a HFT (high frequency trading) operation, you simply cannot hope to get near instantaneous executions and the type of monitoring to constantly scalp the markets in tick increments. Instead, us retail traders have to focus on more realistic goals – catching the larger moves, usually under two points, that occur every thirty minutes or so under normal E-Mini conditions. With the 9:30 a.m. US/Eastern CME open outcry opening time, this provides us with many intraday opportunities. While not every day can produce four points, we can increase our contract amount using a reliable trading method or system. My personal recommendation is the Atlas Line from Day Trade to Win. This indicator is available for NinjaTrader, TradeStation and eSignal. Order signals automatically appear on the charts to indicate the direction to buy or sell in. Stops are also taught in the included live training. The type of trading the Atlas Line produces is entirely objective and puts you in control of each trade.
Let’s face it. Sometimes markets are dead – they hardly move and are untradable. In these situations, we have to switch to an instrument with greater volatility. In most cases, you can find liquidity in the CL, TF or GC futures. Trading is certainly an investment. You want to be as accurate as possible with each trade; filtering the chop and entering when a clear direction will soon be provided. Believe it or not, there is a system that works across futures, currencies and commodities. It’s not like other indicators that need constant adjustments. It also works with NinjaTrader, eSignal and TradeStation. More on this later…
Every now and then, I attend one of the price action webinars at Day Trade to Win to see how well their methods perform live. About once a week, John Paul will open his room to the public, inviting questions and showing his live charts. He also posts the recordings afterwards (see the video above). In the video, he uses one indicator (the Atlas Line) across the CL, TF and GC. Entries are provided automatically, either long or short. More often than not, price seems to magically comply with the order. Atlas Line traders know when to enter, the direction and when to exit (both at profit and when the trade goes against them). Having a complete strategy is the responsible way to trade. The Atlas Line seems to be the real deal, as I’ve heard from its users, seen the results and agree with the idea that price should prove how we trade.
We’ve received a ton of email from traders who want to learn techniques that work across all futures and currencies. Your prayers have been answered. The video above shows three day trading strategies you can use regardless of your charting platform (NinjaTrader, eSignal, TradeStation, MetaStock,etc.).
First, John Paul of Day Trade to Win shows how to trade news events. Contrary to the popular approach, his method does not involve predicting the move of price when the news event is first announced. Instead, he outlines rules to recognize the trade. If the setup occurs, you can then enter the trade according to additional rules. This is a great example of an objective, evidence-based method.
Second, a method for recognizing choppy market conditions is taught. By recognizing the back and forth movement caused by inverse buy and sell orders, you can learn to stay out of potentially damaging market conditions. This is called the “Yo Yo Method.”
The last portion of the video discusses John’s projections for 2012 and 2015. He expects the price of indices to rise by the end of the year as compared to January’s opening price. He also estimates 2015 to be bullish according to a pattern that is said to be 100% accurate for years ending with a five digit. You’ll have to watch to hear his explanation/.