If You Can Draw A Straight Line . . .

[timokrates]

Quote from dbphoenix:

Nice job, tim. Good to see you're not freaked by a tick chart.

You might also note that the rally in the NQ from 64 to 84 retraced 50% to 74 before rallying back to 84. This is all good, at least for now, so you may get that 91 after all.

As for trading the European morning, those hours may be unavoidable. Many of the best entries have been taking place overnight for months now. Why people are suddenly interested in the NQ is a puzzle, but for American insomniacs, this presents an unexpected opportunity.

Thanks DB.

In terms of the microscope I have to say that it does not really matter if it's tick or second chart I believe. As I'm also currently experimenting with the NASDAQ tick as an overlay here and volume to show "interest" I found the 5 second chart the best.

I'm very slowly getting used to everything. A big step I believe was or is to filter the main boundaries of price and watch what happens within - and of course at the extremes.

But there is so much more to do especially in terms of backtesting.
Would you agree that a "setup" contains a "level of trust" and a price behaviour showing a shift between buying and selling pressure in the first place?

At least, that is something I'm looking for atm.

Nothing new of course as the whole thread is more or less about this..

Btw. thanks again for your efforts...also to Gringo and fortydraws...
This is all good...

 

[dbphoenix]

Quote from fortydraws:

Early thoughts for today: I've attached a chart with the levels at which I will be looking for trades noted. It is still early, and there is news coming out and things could change, but here are what my immediate thoughts are.

It's also worth noting, though perhaps not for today, that the midpoint of the reaction from 3150 to 3050 is 3100, which acted as resistance four times since the 18th.

Funny how these things dovetail.

 

[dbphoenix]

Quote from timokrates:

Thanks DB.

In terms of the microscope I have to say that it does not really matter if it's tick or second chart I believe. As I'm also currently experimenting with the NASDAQ tick as an overlay here

I assume you mean the TICKQ?

Quote from timokrates:

Would you agree that a "setup" contains a "level of trust" and a price behaviour showing a shift between buying and selling pressure in the first place?

I don't want to assume that I know what you mean by "level of trust", but it sounds good. I can't say that I really "trust" anything other than my not always reliable ability to detect changes in the demand/supply balance (this requires a familiarity with the 1m interval, or less). But it's essential that one determine in advance what his entry and exit triggers will be. Most beginners just sit there like a deer in headlights when price doesn't do what they expect it to do, leaving it up to the market to manage their trade. I prefer to take a more active role. This business of detecting these changes has always been a hurdle for beginners (even those who've been at this for ten years) which is why I came up with this straight line business. But one can simplify only so much. At some point, one can either see it or he can't.

For example, price hammered away at 58 for 18 hours before yesterday's open, so going long at the open was pretty much a duh (sellers had 18 hours to drop price and couldn't do it). So, in a case like that, I'd give price as much room as possible.

 

[dbphoenix]

Quote from dbphoenix:

You might also note that the rally in the NQ from 64 to 84 retraced 50% to 74 before rallying back to 84. This is all good, at least for now, so you may get that 91 after all.

Or not. Looks like buyers don't have it after all, and we're circling this midpoint. Since price hasn't rejected it (sinking to 71 doesn't constitute a rejection in my book), I suggest standing aside.

 

[fortydraws]

Quote from dbphoenix:

For example, price hammered away at 58 for 18 hours before yesterday's open, so going long at the open was pretty much a duh (sellers had 18 hours to drop price and couldn't do it). So, in a case like that, I'd give price as much room as possible.

I was unhappy with how I handled yesterday. My long entry was not as favorable as it might have been, and my exit obviously earlier than it needed to be. I think my late reaction to what I had been actually expecting is what through off my equilibrium yesterday. By the time I exited the trade I was simply not seeing price as I knew I needed to see it, so I stopped altogether.

 

[dbphoenix]

Quote from fortydraws:

By the time I exited the trade I was simply not seeing price as I knew I needed to see it, so I stopped altogether.

Always a smart thing to do.

 

[dbphoenix]

Quote from dbphoenix:

Or not. Looks like buyers don't have it after all, and we're circling this midpoint. Since price hasn't rejected it (sinking to 71 doesn't constitute a rejection in my book), I suggest standing aside.

If we make it to 64 before the open, it'll be real interesting to see what buyers do, though 68 may also serve as a platform.

 

[timokrates]

Quote from dbphoenix:

I assume you mean the TICKQ?

Yes. Have to say that it can be tricky, but in general together with volume at breakouts or extremes it could maybe be "the icing on the cake" - as you mentioned once...

I don't want to assume that I know what you mean by "level of trust", but it sounds good. I can't say that I really "trust" anything other than my not always reliable ability to detect changes in the demand/supply balance (this requires a familiarity with the 1m interval, or less). But it's essential that one determine in advance what his entry and exit triggers will be. Most beginners just sit there like a deer in headlights when price doesn't do what they expect it to do, leaving it up to the market to manage their trade. I prefer to take a more active role. This business of detecting these changes has always been a hurdle for beginners (even those who've been at this for ten years) which is why I came up with this straight line business. But one can simplify only so much. At some point, one can either see it or he can't.

It is all not easy for me, but I think I know what to look for and where - and with where I just mean levels found by the presented techniques.

Then there is the hurdle of actually doing it...wait...watch closely...enter...watch closely...maybe exit...maybe scale...maybe do nothing...wait...exit...knowing this in advance and also what one would be doing in case is a level I have not reached yet.

Another thing is simple surfing the (big) waves which the market presents. I was clearly visible that after the news the bulls where maybe not able to push price higher, but I did not think about shorting...even if macro direction is also down maybe...

 

[dbphoenix]

Quote from timokrates:

Another thing is simple surfing the (big) waves which the market presents. I was clearly visible that after the news the bulls where maybe not able to push price higher, but I did not think about shorting...even if macro direction is also down maybe...

Daytrading is not the end-all and be-all. Most "daytraders" aren't even daytrading in the first place. They're trading at work or between classes or wherever when they really ought to be trading EOD, or at least 60m intervals. But they insist.

Follow the smaller intervals when you can just so you can get an idea of what traders are up to, but trade whatever interval is most comfortable and also most reasonable.

 

[dbphoenix]

Quote from dbphoenix:

If we make it to 64 before the open, it'll be real interesting to see what buyers do, though 68 may also serve as a platform.

And we bounce off 68. Anybody know why?