Trading E-mini S&P Price Action Record Highs
With the E-mini S&P finally pushing beyond the 4,000 level, we have a new record high. Can you remember not too long ago when breaking 3,000 was a big deal? It makes you think of inflation, doesn’t it? Regardless of the underlying currents and who or what manipulates the markets on a regular basis, we can still find entry opportunities as seen here. You’ll see a number of Long opportunities that coincide with the bullish trend. It’s John Paul from DayTradeToWin using the method.
Notice anything unusual about the chart in the YouTube thumbnail? Hint: it’s a range chart. That means every candle is going to be set at a certain height or capped at a certain value, or range, of price activity. This is a 2-range chart, so every candle represents two price movements: two ticks of movement that is, regardless of however much time it took for two ticks of activity to occur.
The yellow line on the bottom that looks like Bart Simpson’s hair is actually the ATR. It’s entirely unusable on an range chart. ATR means “average true range” and if the range of each candle is already “locked in” at two ticks, there is no point in calculating an average, so don’t use the ATR with a range chart. With purchase of the Trade Scalper, you’ll learn how to trade range charts, including what profit target and stop loss to use. Range charts are great when the E-mini or other futures are slow. However, when the E-mini is fast, the range chart will be moving too fast to be worth trading.
By the way, the Atlas Line software can also be used for scalping. The longest an Atlas Line trade should extend is approximately 20 minutes. For many traders, such a relatively short period qualifies as scalp trading. Typically, the maximum Trade Scalper trade is about five minutes. The real-time market activity will determine the duration. The time-based stop is what “gets you out” after a certain period. Note that it’s not possible to set a true time-based stop loss in NinjaTrader, so you’ll have to pay attention to passing time using minute-based candles or whatever within NinjaTrader.