My NQ Journey

[J_Smith]

If you want to try and understand the way I trade, you must look at what I do and try and understand why I do what I do.

The first thing I do is - draw 3 lines on the chart as follows before the market opens - well, the lines are on the chart and I just move them each day (limitation with TWS software, but I am used to it by now).

1. PDH (red for resistance)
2. PDL (green for support)
3. Close > shifted to Open (yellow) when the bell goes ding dong at 09:30 NY time.

If we are inside the PDH and PDL we have an INSIDE DAY.

If we are outside the PDH or the PDL we have an OUTSIDE DAY.

NQ is an OUTSIDE DAY but was an INSIDE DAY - note we are only interested in stock market hours, we don't care about any time outside 09:30 to 16:00 NY time which is exactly 13 x 30 min bars - unlucky for some

J_S

 

[J_Smith]

This is going to sound so simple, you will not believe it and think I am a crazy Irish Paddy

I can not make you think as I do - all I can do is explain some things to you - it is YOU who will have to work out the reasons behind the thought process, and that is the real hard bit - much harder than you can imagine, but, only YOU can know how you will do.

Price will always do ONE of 3 things - Mu.C.Md

1) Move up
2) Consolidate
3) Move down

We can have the following, and other combinations.

C>Mu>C>Mu>C>Md>Mu>Md>C

What do you think is the most important letter?

J_S

 

[J_Smith]

What I discovered, is, that most of the usual stuff out there is really a total waste of time - they all just repeat the same old thing over and over.

Take the chart below - it is easy see the NQ is not moving much, and you do not need and lines to show you that - I have drawn the usual wedge formation in ways that some use - imho, totally not required.

What do you think of this and other things such as flags, pennants, butterflys, triangles, ratios, etc, etc ,etc?

J_S

 

[J_Smith]

Btw, if you do not like what I am saying, or think I am posting too much stuff here - just say it, it is after all your thread

J_S

 

[J_Smith]

The green line is far more important than any wedges or such!

I use an old school thingy you would see carved out on the tree in the playground

NQ xx DB

NQ xx DT

Same goes for ES.

Note it is no good having lines at the top of the chart if price is near the bottom of the chart - so I move them around!

J_S

 

[J_Smith]

This is a better setup for you to look at - my single big chart is just experimental.

Can you see the advantage of this type of layout for trading?

J_S

 

[Yass]

I appreciate all the comments, keep 'em coming. I definitely need to clear up my trading space so I'll be thinking about that a lot today in terms of how to reduce that on at least my execution area. Your comments help with that.
I've got 3 monitors available so I'll be more efficient with my space.
Apart from the technical side of trading, do you have any suggestions for traders struggling with FOMO?

 

[J_Smith]

Last chart for today!

J_S

 

[J_Smith]

I appreciate all the comments, keep 'em coming. I definitely need to clear up my trading space so I'll be thinking about that a lot today in terms of how to reduce that on at least my execution area. Your comments help with that.
I've got 3 monitors available so I'll be more efficient with my space.
Apart from the technical side of trading, do you have any suggestions for traders struggling with FOMO?

I assume you do not mean "Far Out Monthly Options" , so I take it you mean "Fear Of Missing Out".

There is no place for doubt when trading Futures - it can cost you a lot of money, and I know

If you have been looking at the charts I posted today, you will see many issues with trying to catch small moves - and today was a quiet day!

Getting back to the original statement, you must pick an approach and stick with it - I call this "staying on the bus".

In effect, what this means, in order to be consistent (which is required for profitability), you must latch on to an approach that is repeatable, over and over, and do nothing but that - NO MATTER WHAT!

Chopping and changing will not only waste your time, but it will prevent you from learning what really works, thus doing nothing but keeping you going around in cirlces - the majority of readers here will relate to this, even though they are too ashamed to admit it - but I know it is true, because I have learned over time, at great costs sometimes, what works best and what does not work at all - and no matter what way you decide to trade (it has to be valid of course), if you do not "stay on the bus" it is all a complete waste of time, effort and money.

Most speak rubbish - it is as clear as day to some, but as we all know, things rarely change in the world - this is just a fact of life - so one can accept it and stay a part of the crowd, or start to realize that the key to success is not knowledge, but is the application of knowledge in the best way!

In other words - common sense is not all that common!

J_S

 

[J_Smith]

So, as you want to try and improve - as it is your responsibility and no one else - what did you see wrong with some of what I said today, or to rephrase it better, what did I NOT say that makes you think that I am only waffling on like most, after all, I did not give you any concrete trades like buy here, and sell there, and so on!

J_S