My nq price action method
- Thread starter slugar
- Start date
I was asking b/c the same reason that was stated for the trade by slugar would apply to my circle.
1. "3.short on a failure at resistance 3625.50"
2. STP would be the high of the peak bar
3. Breach of a down TL would take me out.
In short, the 2 circles would have the same rules.
Gabe
http://screencast.com/t/uPBsJZWBPz
And itâs good you asked Sir
Typically (iow momentum trades aside - because they are a completely different animal) â weâre looking for a preponderance of the evidence for a signal/ reason to enter
The first entry â one youâre inquiring about â price ducked back under the S/R line⦠and was making a LH
The second entry â one Slugar took â also had the benefit of a DT (based on the first entry youâre inquiring about)
Yes the first trade could have been taken..., yet the second had a greater preponderance for taking it
Make sense Sir
eta - If Slugar had in fact taken that first trade - my comment to him would have been - that was a risky trade (not enough supporting PA)
Cannot overstate how important details are
RN
Thank you for the answer but I really don't see the difference.
Each peak (circled) was higher than the previous one so where is the DT?
(2 was higher than 1 and 3 was higher than 2).
Please explain.
Gabe
The reason I didn't take the 1st one was because for about 20 bars before it we were going up. On the 2nd one the up trend seemed to be losing steam and when it failed at the last high I thought it was a good short! Also on the short I took we had a retracement at about 1019 cst that I should have taken but didn't.
I was wondering about that one b/c it looked like a very good setup.
At least we seem to be on the same page (sometime)
Gabe
Maybe I am a stickler for details but for me a double top is when the 2 peaks are at equal level or the 2nd (most recent) is a bit lower.
With that said, I see your point RN.
Thanks for the explanations.
Gabe