My nq price action method

Redneck said:
On another note

What is our consistent actions / mainstay of our trading plan (think of this as a test
More...


Identify the direction (recall / use the definition of an edge)

Identify / wait on an entry (which includes a low risk stop loss)

Enter

Wait till it time to exit

Exit – for a profit.., or a loss

WRR


No matter.., this never changes

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This would be the core of our trading


RN
 
I'm looking at my pre market prep work and as of right now I am looking to see where the nq is trading. What the big picture is and where we are at in the current trend. Also area's in the premarket that might have been support or resistance. Am I missing anything else?
 
Redneck said:
Comment on DT / DB

So - to determine if it worth wild to trade this not yet confirmed DT/DB - what do we need to do/ need to see??
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Couple of ways to trade what we think is a DT / DB

One – would be to enter a Buy / Sell stop mkt order - placed above / below the potential DT/DB

It an order.., that when hit - gets you into a trade - as opposed to a stop loss that gets you out

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Other – read price

Trading TF;

What I don’t want to see – price breaching the DT/DB level

What I do want to see – reluctance / resistance / weakness - coming in – near / at that level

On the Lower TF (micro view into the structure of bar(s) on my trading TF

I want to see;

Possibly a failed re-test (could be two adjacent bars)

Lower – or at least equal – H or L (depending if it a DT or DB) on adjacent bars

Possibly a thrust away from the potential DT / DB area… a return for a retest – which fails


Time; Is it near the opening of a new bar on my trading TF (start noticing what occurs when a new bar opens)


Another scenario;

Price hits the area.., is rejected - then skirts off - at these times - a breach of the LHs formed on the lower TF (in a DT & price moving down)..., or..., a breach of the HLs formed on the lower TF (in a DB & price moving up) would be the stop

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Iow.., we’re looking for clues and cues price does not want to breach that level

Make sense?

Go back and review the DTs / DB’s on a lower TF – see if you can pick up on the clues

If not post both charts (your trading TF and a lower TF) and let’s see if together we can pick out the signs

Sherlock Holmes..., I presume :)

RN
 
slugar said:
I'm looking at my pre market prep work and as of right now I am looking to see where the nq is trading. What the big picture is and where we are at in the current trend. Also area's in the premarket that might have been support or resistance. Am I missing anything else?
More...


You’re trading futures – I trade stock… your premkt..., I presume..., is much more active than mine

That said – allow me to talk out of both sides of my mouth (may as well get used to it we are after all bi-directional)

Learning to trade;

I think it beneficial to start at the bottom (a small TF) …, learn how price works there… then move out to bigger and bigger views (TFs) – specifically learning how small(er) TF bars make up large(r).., and ever large(r) TF bars

(remember though.., it is all the same information - simply busted into what ever time one chooses)

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Actual trading – is the exact opposite (again imo)

First and foremost – always remember.., price does not act on only one plane – it works on both the horizontal and diagonal



That said;

Always start big picture and work your way down

Look at price from the last turn (1Q 2009 or thereabouts) – create a channel – Where is price in that channel?

Move to a shorter view (TF) – identify the S/R areas (identified via the way I described in PM) – Where is price in that?

What about the trend from the last swing on this TF (not to be confused by the aforementioned turn.., on the overall) - create a channel encompassing that - Where is price in that?

Now you have a horizontal and diagonal map

Important notes:

Don’t go crazy making lines – a few is good – to many is plain confusing (ultimately you’ll need to decide)

Make sure every line you copy from one TF..., to another TF - is copied exactly… and I mean exactly

From one TF to another the scaling is skewed (nature of the beast – more or fewer bars in the same basic physical space)

Nothing is more confusing… or more frustrating – than conflicting lines on different charts (one tells you this…, the other tells you that… and meanwhile price is saying something totally different – pure frustration because we don’t know what the hell)



Observing the premkt

I can’t really say.., because I don’t know… in general terms look for rejections / thrusts / ranges – and make note of them

Ultimately – you’ll need screen time.., observing to see how (or if) these come into play during RTH

If you don’t have a journal – please get one.., or two

One for capturing trading specific notes…, one for capturing you specific notes

You can use one..., but please use it

RN
 
Redneck said:
Move to a shorter view (TF) – identify the S/R areas (identified via the way I described in PM) – Where is price in that?

Now you have a horizontal and diagonal map
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Example I posted a while back in another thread attached

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Notes;

Support = Demand = Buying = Strength

vs.

Resistance = Supply = Selling = Weakness

different words used to describe the same exact thing (PA / Context / Conditions / Price Bias)

BTW;

Price bias is exactly that - Price's bias... not our bias

We keep our self separated..., neutral (centered)..., and objective - whenever we're unable to do so.., we stop trading until we can

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Happy Easter to You and Your Family as well

RN
 
Ran out of time editing the above post

To add to the terms strength / weakness


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But (and again talking out of both sides of my mouth)

The term Weakness - is also be used to describe a condition - where price is moving up - but slowing (in the form of more selling / shorting..., less buying)

as well

The term Strength - can be used to describe a condition - where price is moving down - but again slowing (in the form of more buying..., less selling / shorting)


Either could be the prelude to a pull back / retrace / reversal / consolidation (range) - or not

Trading PA means we're constantly evaluating & looking for clues


Note on context;

Clear.., concise context is absolutely vital..., not only when deciphering PA's clues/ signals/ reading PA..., but also when determining the meaning of the term(s) we use



RN
 
Another test Slugar (trading is full of em – may as well get use to it)

Attached.., are two sets of channels

One set represent an up move…, the other set represent a down move

The two up move channels are at the same angle…. As are the two down move channels

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Comparing the down move channels against each other

Or

Comparing the up move channels against each other

Other than color – what is different…, what does that difference mean…, what does that difference represent


This all in the context (and effort) of reading PA


RN
 
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