My nq price action method

[Redneck]

That has the “appearance” you are calling (expecting) a bottom / turn.., or a big ass range
When entry is lower (than the previous trade) – so too should the target (for longs)…
Same as when entry is higher (than the previous trade)…, target should also be higher (for shorts)
Make sense??

RN: May you please help to elaborate why you think a lower[higher] long [short] entry than previous trade the target should be lower [higher]? I guess you are talking about fixed profit target set in advance.

When entering long @ a lower price.., lower than that of the previous trade’s entry price where you also went long – price is / has been moving down

So unless one is anticipating a reversal – it reasonable to think the target for this second long would be lower than the target for the previous long

Same for entering short @ one price… then entering short again on the very next trade but at a higher a price – the target should be higher for the second trade – because price has / is moving up

Please realize – I said this in the context of Slugar’s trades

Yes I could cite examples where..., what I said would not necessarily apply – but I’m only focused on his trades

RN

 

[Redneck]

Please help to comment whether the following makes sense: suppose no fixed profit target and only use trailing stops to manage the trades.

Order types / what to use (the 64 thousand dollar question)

How will one manage trades – actively / passively

How liquid / illiquid the instrument

How volatile

How much size is one trading

How is one trading

Entries – Mkt / Limit / Buy Stop

Stops – mental / entered and resting / possibly trailing

If mental – will it be honored 100%
If resting – does it rest out on the exchange.., on one’s computer…, at the broker
If trailing – need to account for volatility/ momentum fluctuations

Targets – enter a resting order @ target..., use a trail stop..., use a mental target & actively managed



These are but some of the considerations… all of which are very personal and need to be customized to the trader/ environment & instrument being traded

No one size fits all

My only feedback – strive to simplify everything you can with regard to trading (what I deem simple - you may not..., and visa verse)

RN

 

[Redneck]

For the 2nd long, 3 good size green bars bo and close above yellow zone top, prob more up to use a higher PT; For the short, in reality long bottom tail bar touching yellow zone top prob showing more up so exit around its close

First; Slugar never realized that yellow zone existed

Second.., and more importantly – there are 6 bars hitting the top of that yellow range – how many does it take before exiting… taking profit.., looking for the next entry

Price could have gone either way - we simply never know

but suppose if a strong bear bar close inside yellow zone with no bottom tail then prob showing more down to use a lower PT. Thank you very much.

Can’t argue with this Sir…

But again - we never know - and if price had closed in that zone..., then I would have waited to see which way out of that zone it was headed..., or how it was setting up inside that zone

RN

 

[Redneck]

I was trying to ask you whether what i wrote/thought does make sense.

Made perfect sense Sir

I had no intention to suggest anything..

I never thought you did... I was simply explaining where I was coming from

Please share your thoughts - it is important - and.., that's what we're doing - sharing


RN

 

[Redneck]

we have to make decision in real time while PA could be totally different from what we see in the past and sometimes we have to act very fast

Tis in fact the world in which we play

Best to always have a plan - otherwise chaos could easily consume us.., and our actions

RN

 

[slugar]

trades for today 1. long on a double bottom 3574.50 stop 3570.25 target 3585 last swing high. 2. long on a higher low 3577.5 stop 3572 target last swing high 3587. 3. higher low long at 3592.50 stop 3590.50 target? 4. double top short at 3605.50 stop 3605.75 target 3591 swing high. last trade lower high short at 3590 stop 3594. target 3575 923 double bottom

 

[Redneck]

General comments;

Like your range – whenever price in its vicinity – use it by extending it across (see 12:55 PM to end of chart)


There is a narrower zone above it… and a small zone (aka range / aka hinge) at the bottom

Like your lines – but – 2nd UMTL should be tighter (see my attempt to draw it)..., then fanned once price breaches it..., then resumes the move (assuming it does resume the move)

Your UMTL is a perfect fan..., and where it touches – the 2 bars – are HLs (I drew a blue circle around them) -

Potential trade plan based on these HLs
HL, long
Stop - breach of TL
Target - breach of TL


Your DMTLs;

The red one I drew – is the initial
Next one you drew – would be the first fan
Last one you drew – would be the next (and final as it turned out) fan

price is saying; I've stopped trying to go back up - I'm heading down


Note;

Needing to fan lines - price is saying its momentum is waning (true on either an up move…, or down)

========================

Trades for today

Trade 1.
long on a double bottom / 3574.50
stop 3570.25
target last swing high / 3585

Comments

I don’t see the DB
Why not a stop of 2570.75 (manage risk first)
I don’t see the last swing high
UMTL is just a little loose (me being picky)

Trade 2.
long on a higher low 3577.5
stop 3572
target last swing high 3587.

Comments

Stop is a little too liberal – other than that – solid trade (notice the horizontal cyan line I drew for the target )

Good job - remember to always manage risk first



Trade 3.
higher low long at 3592.50
stop 3590.50
target?

Comments

Target? = (1st target is the cyan TL I drew ( the potential DT – which is also a break of a tighter UMTL – yours would be the 1st fan)

If you exit there @ the DT – you could then reenter on the DT breakout and use your UMTL to manage the trade (stop = breach of it / target = breach of it)

Or short..., if the DT held



Trade 4.
double top short at 3605.50
stop 3605.75
target 3591 swing high.

Comments
I like it – and because PA up – your target took that into consideration (not expecting the reversal.., or as deep a PB)

Very nice


last trade
lower high short at 3590
stop 3594.
target 3575 923 double bottom

Comments

Given the range – you drew.., and I extended out – I think the target too optimistic

Takes real effort for price to break a large zone – granted it tried – initially – then retested the top of the range – and finally got to the bottom of the zone – but no further

Trade is solid

RN

 

[slugar]

General comments;

Like your range – whenever price in its vicinity – use it by extending it across (see 12:55 PM to end of chart)


There is a narrower zone above it… and a small zone (aka range / aka hinge) at the bottom

Like your lines – but – 2nd UMTL should be tighter (see my attempt to draw it)..., then fanned once price breaches it..., then resumes the move (assuming it does resume the move)

Your UMTL is a perfect fan..., and where it touches – the 2 bars – are HLs (I drew a blue circle around them) -

Potential trade plan based on these HLs
HL, long
Stop - breach of TL
Target - breach of TL


Your DMTLs;

The red one I drew – is the initial
Next one you drew – would be the first fan
Last one you drew – would be the next (and final as it turned out) fan

price is saying; I've stopped trying to go back up - I'm heading down


Note;

Needing to fan lines - price is saying its momentum is waning (true on either an up move…, or down)

========================

Trades for today

Trade 1.
long on a double bottom / 3574.50
stop 3570.25
target last swing high / 3585

Comments

I don’t see the DB
Why not a stop of 2570.75 (manage risk first)
I don’t see the last swing high
UMTL is just a little loose (me being picky)

Trade 2.
long on a higher low 3577.5
stop 3572
target last swing high 3587.

Comments

Stop is a little too liberal – other than that – solid trade (notice the horizontal cyan line I drew for the target )

Good job - remember to always manage risk first



Trade 3.
higher low long at 3592.50
stop 3590.50
target?

Comments

Target? = (1st target is the cyan TL I drew ( the potential DT – which is also a break of a tighter UMTL – yours would be the 1st fan)

If you exit there @ the DT – you could then reenter on the DT breakout and use your UMTL to manage the trade (stop = breach of it / target = breach of it)

Or short..., if the DT held



Trade 4.
double top short at 3605.50
stop 3605.75
target 3591 swing high.

Comments
I like it – and because PA up – your target took that into consideration (not expecting the reversal.., or as deep a PB)

Very nice


last trade
lower high short at 3590
stop 3594.
target 3575 923 double bottom

Comments

Given the range – you drew.., and I extended out – I think the target too optimistic

Takes real effort for price to break a large zone – granted it tried – initially – then retested the top of the range – and finally got to the bottom of the zone – but no further

Trade is solid

RN

thanks RN I will keep plugging along I really appreciate the time you have put into helping me. Says a lot about someone helping a complete stranger

 

[Redneck]

thanks RN I will keep plugging along I really appreciate the time you have put into helping me. Says a lot about someone helping a complete stranger

Just two traders doin what we do


You are Very Welcome


btw - strangers - in not ever meeting - yup....

kindred in the crap we must go through & endure to get this.... that no one else on earth would (or even could) understand - it... or us

Yeah baby




RN

 

[Huyang]

I was simply explaining where I was coming from
Please share your thoughts - it is important - and.., that's what we're doing - sharing
RN

RN:
Thanks a lot for your prompt detailed response which is very helpful. Currently i learn to trade NQ and NQ only, a beginner. I will respond later after i have finished reading Slugar's journal and very likely will need to ask you more questions. I appreciate your kindness very much.