Did you see the January Effect video from earlier this year? The January Effect is a forecasting strategy for predicting overall E-mini price movement for the entire year. In short, if price loses higher than it opens in January, price will be higher at the end of December. During the year, you can look to swing trade multiple times. These setups occur when price retraces from towards previous highs. The idea is to get in halfway. Use your trading platform’s Fibonacci tool to see a halfway point. We configure the tool in NinjaTrader to only show 0%, 50%, and 100% levels.
If you switch to a daily chart, you can get a better idea of price activity so far. Since April 2018, we’ve seen price continue to climb higher with some excellent opportunities to swing trade. In the video (specifically 3:28), you can see an example of the Fibonacci tool being used to identify such trades. A swing trade can open you up to more risk because you’re holding positions for longer than intraday. Therefore, not all traders can swing trade. Your broker and account funding must be compatible. And of course, there is no guarantee the January Effect will be accurate or that a retracement will not suddenly turn against you.
Swing Trade Techniques
Do you think price will indeed close higher in December of this year? Have you gone back to see if 2017 and 2016 January Effect were correct? Do you think you can predict trending days in advance with high probability? We will post another video in a few months one way or another. At the time of writing, only four months remain in 2018.
Want to learn more? Sign up for the next Mentorship class. A new class begins on August 14, 2018. Get the first week’s course and software right away (ATO 2 strategy) when you sign up.