Thanks RN I'm getting better and I think I know when to pull the trigger need to work on strict rules for exiting and study more market profile so I can get better at support and resistance. not a bad day I managed 18.5 points on the nq without trading the big early swing due to some errands I had to run. I will post my chart in a while with my trades plus the ones that should have been taken.
My nq price action method
- Thread starter slugar
- Start date
There is a member; Ammo - hangs out in the ES journal - he uses MP - and is good at it - maybe study some of his posts
Just don't hindsight it - learn whatever there is to learn - then and move on
No need beating yourself up over the past
Good Job Sir
RN
Before commenting on your chartâ¦, allow me to go off on a little tangent
Topic;
When to combine signals / when to keep them separate
This is theater of the mind..., so work with me here
The scenario;
A down move.., containing 3 signals;
1 - DT
2 - LHâs - which form a down move TL
3- PB - in the form of a range - to the down move TL â which ultimately breaks out to the down side
(initially just think â price is moving down from a newly formed DT)
Weâre watching the chart
And see a DT form (could be adjacent bars⦠could be the two DT bars are separated by some number of bars âno matter itâs a potential DT forming)
We short it â the stop is a breach of this DT (strait forward)
Now insteadâ¦, we miss the above entry and price goes on to create a LL
Do we trade this as it were a DT â noâ¦,
Unless price retests and fails at / near the DT â which would equate to equal Hâs (for a triple top)⦠or a LH (price only got near the DT)
So from the above LL â weâre likely no longer looking for a DT tradeâ¦, but instead looking for a LH entry signal
(and 2 or more LHs can be connected to create a down move TL
Price creates 2 LHs â which we can short â and our stop is â a breach of this down move (LHs) TLâ¦
But no longer would it be a breach of the DT â that trade signal has gone and went.., if we didnât take it initially
However.., if we had entered short @ the DT â we certainly could use a breach of this down move (LHs) TL as the stop
Onward
Price creates.., say 4 move LHs (at a steeper decent than the initial 2 LHs) â then proceeds to PBâ¦, in the form of a rangeâ¦, to the initial down move (LHs) TL
While price is in this range;
Could we use the DT signal or stop â no, weâre way past that â if we didnât take the DT short initially
Could we use the down move (LHs) TL â possibly â recall I said price was in a range â pulling back to this down TL
Could we use a B/Oâ¦, to the down sideâ¦, out of the rangeâ¦, as an entry signal â certainly
Our stop â a breach of the LH (down move) TL / breach of the top of the range (itâs the same)
Now.., if we had entered the DT short⦠or the initial down move (LHs) TL â we could also use the same (as described in the last sentence) â breach of the down move (LHs) TL / breach of the top of the range âas the exit
My point
We need to constantly distinguish and separate when one signal evolves into the next
We can use a failure of the current signal as an exit for the previous entry
But never use a failure of the previous signalâ¦, as an exit.., for the current signal
=========================
Another way you can âbounce these signals off one anotherâ and read price
DT = weakness / down bias (priceâs bias)
LH = weakness / down bias
Range B/O (which btw.., if nothing has changed â then which way should price break out) to the down side = weakness
Price doing this in a relatively tight channel = lack of volatility / consensus / predominant control
All that equates to what = down/ weakness/ short it
=====================
Whether knowingly or not.., today on your frist trade â you used 1 signal to enter (DB)â¦, then the next signal (breach of the up move (HL) TL) to exit â which is perfectly acceptable
But did you realize that
Also â now can you see why I want you to break down that one attachment â the more signals you see in succession â lends credence to what price is doing⦠and very likely will continuing doing
Realize though â this is but one of the reasons (there are several).., you need to really understand that attachment I posted
Hope this makes sense - if not - let's break it down - this is a fundamental to really reading PA imo
RN
Topic;
When to combine signals / when to keep them separate
This is theater of the mind..., so work with me here
The scenario;
A down move.., containing 3 signals;
1 - DT
2 - LHâs - which form a down move TL
3- PB - in the form of a range - to the down move TL â which ultimately breaks out to the down side
(initially just think â price is moving down from a newly formed DT)
Weâre watching the chart
And see a DT form (could be adjacent bars⦠could be the two DT bars are separated by some number of bars âno matter itâs a potential DT forming)
We short it â the stop is a breach of this DT (strait forward)
Now insteadâ¦, we miss the above entry and price goes on to create a LL
Do we trade this as it were a DT â noâ¦,
Unless price retests and fails at / near the DT â which would equate to equal Hâs (for a triple top)⦠or a LH (price only got near the DT)
So from the above LL â weâre likely no longer looking for a DT tradeâ¦, but instead looking for a LH entry signal
(and 2 or more LHs can be connected to create a down move TL
Price creates 2 LHs â which we can short â and our stop is â a breach of this down move (LHs) TLâ¦
But no longer would it be a breach of the DT â that trade signal has gone and went.., if we didnât take it initially
However.., if we had entered short @ the DT â we certainly could use a breach of this down move (LHs) TL as the stop
Onward
Price creates.., say 4 move LHs (at a steeper decent than the initial 2 LHs) â then proceeds to PBâ¦, in the form of a rangeâ¦, to the initial down move (LHs) TL
While price is in this range;
Could we use the DT signal or stop â no, weâre way past that â if we didnât take the DT short initially
Could we use the down move (LHs) TL â possibly â recall I said price was in a range â pulling back to this down TL
Could we use a B/Oâ¦, to the down sideâ¦, out of the rangeâ¦, as an entry signal â certainly
Our stop â a breach of the LH (down move) TL / breach of the top of the range (itâs the same)
Now.., if we had entered the DT short⦠or the initial down move (LHs) TL â we could also use the same (as described in the last sentence) â breach of the down move (LHs) TL / breach of the top of the range âas the exit
My point
We need to constantly distinguish and separate when one signal evolves into the next
We can use a failure of the current signal as an exit for the previous entry
But never use a failure of the previous signalâ¦, as an exit.., for the current signal
=========================
Another way you can âbounce these signals off one anotherâ and read price
DT = weakness / down bias (priceâs bias)
LH = weakness / down bias
Range B/O (which btw.., if nothing has changed â then which way should price break out) to the down side = weakness
Price doing this in a relatively tight channel = lack of volatility / consensus / predominant control
All that equates to what = down/ weakness/ short it
=====================
Whether knowingly or not.., today on your frist trade â you used 1 signal to enter (DB)â¦, then the next signal (breach of the up move (HL) TL) to exit â which is perfectly acceptable
But did you realize that
Also â now can you see why I want you to break down that one attachment â the more signals you see in succession â lends credence to what price is doing⦠and very likely will continuing doing
Realize though â this is but one of the reasons (there are several).., you need to really understand that attachment I posted
Hope this makes sense - if not - let's break it down - this is a fundamental to really reading PA imo
RN
Focusing only on the down move TLs / entries
Iâd say 1.., 2.., 4.., 5.., and 6
Weâre drawn entirely after the fact
Missed the initial move (thrust) down price made â then it appears keyed off the secondary down move to draw the down TLs
And if that true â then I must question the validity of shorts â Aâ¦, C.., and D
=============
Down TL 3 / Short B â I get that one.., no question
Iâll next focus on the longs
RN
Focusing only on the up move TLs
1 â Not connecting the lows (reference my poorly drawn
red TL) â entry is fine
2 â Beautiful line / entry
3 â Beautiful line / entry
eta - There is not an overall down TL drawn - which is okay - but realize the bias (hence short signals) stand the best chance
Not to say going long is not valid... just any long - be prepared to exit quicker / expect less of a favorable move
RN
1 â Not connecting the lows (reference my poorly drawn
red TL) â entry is fine2 â Beautiful line / entry
3 â Beautiful line / entry
eta - There is not an overall down TL drawn - which is okay - but realize the bias (hence short signals) stand the best chance
Not to say going long is not valid... just any long - be prepared to exit quicker / expect less of a favorable move
RN
Not nitpicking - just observations
Nothing is obvious - ever (like expecting - nope)
================
On another note - make sure to rest Sir - tomorrow we do it all over again
RN