What Works in Price Action Trading
This. Webinar was recorded live, and we covered a lot of different topics specifically. Price action we showed the trade scalper signals, live the, Atlas line signals, live as they happen in front of everyone if. You have any questions email, support at, daytradetowin.com, if, you. Like what you learn here at our youtube channel remember, to subscribe to the YouTube channel they try to win and I'll, see you at the next mentorship, class starting June 2nd, good. Morning everyone. West. Tony, ron. Mow. Diane. Chris Bob, bill. Bobby. Out all. Right let me know everybody can hear me nice, crowd. Today in the room so, let me add here a few, of the indicators. To. The chart the, indicators are the date rate to an indicators. Answer. Your questions I'm going to show you the software. In action as. Well, let me take a quick look here. The. Trade scalper. And. When I remove here the roadmap roadmap, is one of the. One. Of the methods, that we teach in the. Mentorship. Program I, want. To remove that it's. Gonna focus on. The. Trade scalper for, right now okay. All. Right so what we have here as a, trader. I want. To look at an, opportunity. To buy or, to sell the. Market for those of you who are new we're. Looking at the e-mini S&P. The. Candles. And the bars that you see here, on the chart our one. Minute candle so every candle is one minute. One. Thing that I do recommend, everyone, to, add to your chart is a, bar, timer so, I'll add a bar timer here to the chart and. That. Way it's a countdown timer. How, many minutes. Or seconds, are left if you're looking at a 5-minute chart or. A. 1-minute chart or a 30-second, chart and so, if there's a. Entry. Or. If. There's a trade, and I. Know that I have to wait until the candle. Closes before I buy her to sell. Can have an advance warning by using the bar timers that's something I recommend I. Also. Recommend, that you use here. The crosshair. Instead, of being a, arrow. Which, doesn't really help me I recommend. Everyone use. The. Crosshair. Either local, or global that, way I can see exactly the price. As, well as the time which. Is very important, anywhere I put, the cursor here, on the chart. Before. We begin a disclaimer. On the risks involved with trading remember trading is risky, please. Don't trade with funds you can't afford to lose talk to your broker just. Understand, that trading is not for everyone and you can make. A lot of money obviously but you can also lose a lot of money so just remember there's risks involved with trading this, webinar is not pre record it's live so. If you guys have questions and, if you would like to see. Something or ask a, specific question of me I'm happy to answer it so this is a live presentation, it's, not a pre-recorded presentation. As many, presentations. Are pre-recorded this is not a pre-recorded presentation. Okay. So the. Trade scalper is what, most traders, start off with, then. They, move. Where they graduate, into. The. Mentorship. Or to another software. Like the Atlas line or the at the open the, trade scalper provides, a lot of signals and there, are a few rules that we have to make sure that we look. At before, jumping in so the first is to know the current market conditions I, refer, to this all the time what's expected of the market and so, I can see that the markets moving at about two points, which, means the last four candles, of the e-mini S&P have. Traded. For a distance. Of two points, and I can expect the same moving, forward so if there's a signal. To go short just remember two. Points, one, and a half points, one point three takes it's all doable but what's not available. To you as far as a distance, for profit, is let's. Say three points, or four points unless you trail a stop unless you hold off to the trade with, some type of trailing stop model but, as far as the distance just refer to the ATR, and. Be a little bit more conservative, there's nothing wrong with taking, a tix instead of nine so. This here. The scale is based off of points, but, the smallest increment any, move. On any market, could make is referred to a tick in currencies.
It's, Referred to a pip and this, happens to be, $12.50. Every. Tick. Or every time it moves so. This, is 0.25. Quarter. Point. Equals. $12.50. Every, point is four ticks so one point is. $50. So. That gives you a reference point of the. Kind of money that you can make or you could lose as well the. Risk involved. How. Your, profit, targets affect your, trading account as, well nowadays with. The volatility, being the way it is check with your broker to make sure. That. They have not increased the. Margin. And typically. Margin, for every e-mini or a, mini, contract, is probably. 500 to a thousand dollars for micros, micro-mini. Is even smaller you can trade with less money so you don't need you know thousands, and thousands and thousands of dollars to open up an account you, just have to make sure you abide by the margin, and I also think it's good to have a little bit more than, just margin, money okay, so margin. Money is to. Keep you in the trade have a little bit of a buffer. There in case you get stopped out and you want to trade again and that way okay, you're always able to continue, and recover, so. One thing here that I see is the market is dropping and going lower and lower and lower but, it doesn't necessarily, mean that, this. Will continue. Lower. You're, going to see that markets, don't. Often. Move. In a trend, and, continue. In a trend for long periods, of time and by, the time you, look at a, moving. Average crossover, or an MACD. Or all the indicators, that most, of us most traders are trying to make heads or tails of typically. The move is over, so, as the market is going down finally. Your moving average, so verse or. Whatever. Type of indicator. You may be looking at, tell. You to go short and sometimes, that's the at the end of the move so let's not focus, so much on, the. Average indicator let's, instead, look at price, and look, at time, and look, at how the candles, are moving, and working to make our decisions, because with. Indicators. There's always an. Optimization. Factor and if anyone looks. At optimizing. Specific. Values.
It's Just curve fitting data onto the chart and that's not how. We should train we shouldn't look at you. Know because this moved in such, a way and you curve fit or optimize, the data that, these specific, values, work. That it's always going to work so instead what I want to do is I, want to look at the, wicks, I want to look at the bodies of the candles I want to look at the pricing, I want, to look at the ATR, and the. Current conditions, I want to know if the market is too volatile, or it's too slow, so on the e-mini, S&P whether. It be a one-minute. Chart or a five-minute chart. Nowadays. We're, looking more a one-minute, chart because, the volatility. Is so high, this. Would, be between. One and five, points, as the. Sweet. Spot to. Take trades anything, above five points, here, whether it be on a five-minute, chart or on what. We're looking at a one minute chart is really volatile and there's, a lot of risk involved and anything. Less than one point as, well. I believe, it becomes too much of a chop and the. Market is too slow and it's whipsawing, up, down, up down all, right Bobby can you hear me okay a little bit better okay so now what, I'm looking at here, is, a. Potential, to. Buy or to sell at, the right moment, so look. At what we're seeing look, at the candles I don't have any, indicators. On the chart that most, of most, of us look at and. What. I see and so this is just basic, price action what, I'm explaining. To you here is I see that the market came, to, this. Low over, here, right. There this price, looks like about. 1305, 75. So. Here is. What. Markets love to do and you should start looking at this markets, love to. Test. Where. They've previously been, so. If the market, prefers. To. Be in areas. And in prices, where, it's already been as opposed, to moving into areas of unknown, territory, for the day or for the year. This. To me tells me that there's a high likelihood, that the markets gonna want to test this now. I could go through it it, could test it and bounce off of it all, I know is that the market has traded to this price right. Here and there's a high likelihood that the markets want wants, to come down and test this. Low now. In. A, simple, term that's called a double bottom or a double, top and, it.
May Or may not happen but. Now that we know a, little, bit more about how, price action works and what to expect let's. Put some rules to it and let's say I'm going to go short for, this reason or I'm going to go long, for this reason so, if you go short. You're. Looking at going short because the market is testing words previously, been and very. Important, always try, to get a better price or enter. At a better price if you. Try to enter, at a price. That. Is. A bad fill or you're chasing, the market, that's. Never going to work so. If I know that the market wants to test this, low it's, much better to enter at a better price. Here. Up here as it. Comes. Back down to test where, it's previously, been and so, a lot of the methods that I teach are based, off of first. Understanding. Where. The market has been and then, trying to enter, at a, better price and, taking. That in that same direction. The. Answers here do you play gap-fill, I don't, play the gap-fill I don't trade. Gaps I just look at the markets as they're, working, as they're, operating. And. The. Software, and the, courses actually teach you the methods so it's not as if anything that, we're looking at is black box and you're never going to understand, how it works I actually like to teach and show you the. Trades why, they're happening to. Calculate them on your own if you're, not. Using ninja trader or, if you're using a different charting, platform, you can actually trade them on your, own without the software so I want to teach, you something and how it works. Now. I'm also going to add here the, Atlas line and there's. Also another. Way. You could look at the trade scalper I'm gonna put up a two range. Chart here, and, I'm. Going to look at the. Trade. Scalper here, just a second. Because. The two range chart allows, for very fast entries, in and out of the market. We. Don't need the ATR. When. Looking at a range chart. And. So. This is a range chart and this. Here would be a, 1-minute. Chart. Now. The difference, is between the two, charts. Is one is based on time. And the other one is based, off of the. Movement, so a two range chart let me just bring this out here a. Two. Range chart here over. Here and this one with this is every. Candle is based off of two, ticks so it's just distance. This. Here, is time. So. When the candle closes one, minute, there's, a recalculation, when, the candle closes there's a recalculation, this. Here is movement, only no, basis, off of time whatsoever. So if the, market is moving the signals are being generated on. Distance. This. Here, allows. You to do not just distance. But time the candles, have to close for the calculation, to. To. Operate. So. This signal, 3000. And 575. To go short is a. Signal, that was generated. With. A target, of I don't think more than two and two. To two and a half points here, based on the ATR. 1305. 75, is right. Here. And. So. This, is when this candle, closes. This. Signal, appears, for. You to go short now. If it's a very fast market, and the market just takes off on you and you don't really have an opportunity, to. Go, to your dome or go to your chart trader and jump in let, it go I don't, want anybody to jump in and, enter. Short here. Unnecessarily. When, you could have entered on this candle here or at the close of this candle. So. Really my goal is not for you to chase the market with bad fills it's for you to understand, why, the signals, are happening, make. A decision, whether you want to go short know in advance which is very important, that the signals are going to be triggered, and going to occur and that. Way if you, know what the ATR, is you. Can say well the ATR, is at two points, or three points, I know, that, a two point, or one point or two and a half point target, is an. Option. If. You hold on to a trade for too long it's. Not in your, benefit, so most. Of the time I like, to hold on to. A trade, if, it's going in my favour great, but if it's not going in my favourites breakeven, or small win or small loss, typically.
After Four candles I call that a time-based stop it's. Time to exit the trade and look. For the next trade okay, so. From here to here. Five-and-a-half. Points, is not something that I would consider I would, consider instead, at the time the, ATR was. About. Two and three quarters so I would say a good two and a half two point move is, what. You should be at least looking, at as a scalper, or, as a quick in and quick out without, holding on to the trade and being done with it anyone, have any questions. All. Right Diana you're good Bobby, Wes, Ron Tony. Chris, Wes. Al. Lb, all right so. This. The trade scalper is what you're seeing here is just one of the methods that I teach they're all different, for. Example the at the open method. Is. Based. Off of the market, opening. And beginning. To trade in a direction, so the market opens, whether. It be the London session or the u.s. session or it, could be any market really the asian session and as, soon as the market opens it begins to move up or it, begins to move down from. That point the at the open method begins to calculate, and says, well if the market is going up I can do. Something with that long trade, if, the market goes down I can do something with that short trade and typically, it's just one trade, per, day on the. At the open method the trade scalper as you can see here has a lot of signals and not that you want to take every signal I don't think that trading. Right as the market opens or trading right as the the. Session is about to close or even some overnight, or. Globex, situations. I don't think that's, the right way to go when. Trading overnight, because sometimes the market is too slow or, during news events so obviously, you have to use a little common sense as a trader not to throw yourself into a situation where. You. Know you you're, you're placing, a trade at the worst time you should place the trades when there's nothing that's, going to conflict with what you're doing and that would be the time of day during, a news event when, the markets too slow or too volatile.
Jay. Here, asks. Can. You explain what the five-point scale represents again sure so this, scale, down here Jay the ATR, down. Here the. Average True Range the ATR, is based. Off of the. Last four. Candles, that have plotted so, currently, I'm looking at a one minute chart so, the one minute chart. The. Last four candles that have plotted, are these, four candles so what it does is it, takes and you can do this on any market, as long. As it's a minute, chart so one minute five minute 10 minutes 60 minutes saw the same daily it. Takes the high-to-low from. Each of these four, candles, divides, by four and says, the last four, candles, in this case the last four minutes have. Traded. From. High to low on average, three, and a, quarter points, now. Three and a quarter points, over, here would, be roughly. If you multiplied. Or divided it about. Twelve thirteen, tix twelve thirteen tix so. Or. Three. Points so if you're looking at 97. To. 3007. To. 94, so the distance, that this. Candle, is, going. To move is going, to be pretty much equal, to, the ATR, of the, last four candle so that's what the scale is representing, it's representing, the. Distance, some. Markets. Are in points, other markets, are in ticks the. Currencies, for example are in hundreds, some. Markets, are in tenths but it's, really all the same it's, not that difficult to to, understand what it's saying it's. Saying that the last four candles have moved three and now, three and a half points, which is now these four candles and. So. This candle, you can expect, it to move this, distance, now. The distance could be up or, the distance could be down and so I'm not this doesn't tell you Direction J so. You're not I'm not going to expect it to go down three points or, up three points it's just the range of the candle from high to low has. That expectation. And why, that's important, you, got to tell you welcome so what why that's important, is because if, you, enter, into a trade and you're wondering what's, the stop and what's, the target and what, I what, can I expect out of the movement this, at least gives, you a direction I can expect the distance, of this candle, to be roughly three and a half three and three quarters of a point, which. Will then lead me to say what's my stop what's. My target and, so on if you want to learn more about trading, visit, daytradetowin.com. Subscribe. To the date rate to in youtube channel the next mentorship, class where. We cover all of these methods with. Lifetime licenses, for the software. You. You.