NQ Price Action Journal

Quote from niko:

Ok, looks like the FOMC has everyone waiting for the Tapering news and this is just too much chop (unless one can take longs at 89 and close at 93.

I will cal it a day. No trades...
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Since you have so many issues with chop, I suggest you go back to the pre-market trading range and track it forward from around 0800EST in order to determine just where and how the chop started and how long it lasted rather than just put it all behind you.
 
Quote from dbphoenix:

Since you have so many issues with chop, I suggest you go back to the pre-market trading range and track it forward from around 0800EST in order to determine just where and how the chop started and how long it lasted rather than just put it all behind you.
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My problems with the chop come from getting burned too many times with it, so I try to avoid it at all cost (perhaps too high of a cost), but as long as I can stay away from it my state of mind is in the right place to take action when a trend shows up. I have discovered an incredible amount of issues with my mind trading the markets, hehehe.


I noticed premarket that there was a hinge forming around PDH and that the MP of that hinge coincided with the PDH level, just at the open I was thinking that a BO to the Upside was going to be the way to go as the hinge BO had failed just before the open. But it never came, then I had mixed ideas about the LOLR, as the 60 min DL was being poked and the 5 min was a mess, so I defined the TR between 93 and 88.

From the open till 11:00 the BO never came, it happened just after 11:00 but the first attempt ended up in a failure and the next one did not go very far either.

I think I am addressing your comment, but I am not sure I am giving you the answer you are looking for, please let me know.

And by the way, thanks for posting here, really appreciate it.
 
Quote from niko:

My problems with the chop come from getting burned too many times with it, so I try to avoid it at all cost (perhaps too high of a cost), but as long as I can stay away from it my state of mind is in the right place to take action when a trend shows up. I have discovered an incredible amount of issues with my mind trading the markets, hehehe.


I noticed premarket that there was a hinge forming around PDH and that the MP of that hinge coincided with the PDH level, just at the open I was thinking that a BO to the Upside was going to be the way to go as the hinge BO had failed just before the open. But it never came, then I had mixed ideas about the LOLR, as the 60 min DL was being poked and the 5 min was a mess, so I defined the TR between 93 and 88.

From the open till 11:00 the BO never came, it happened just after 11:00 but the first attempt ended up in a failure and the next one did not go very far either.

I think I am addressing your comment, but I am not sure I am giving you the answer you are looking for, please let me know.

And by the way, thanks for posting here, really appreciate it.
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No offense, but this is gobbledygook. This isn't about lines and patterns, it's about price movement. You get "burned" by chop because you have yet to define it properly. So your first task is to define it properly.

At 0630, price begins to settle into a range from 91+ (set two hours earlier) to 93+. What then happens at 0815?
 
Sellers try to break out of the range, but they fail, volume increase substantially (relatively), but price does not fall, it just goes back inside the range. Buyers are unable to reach the last high, so they are not interested either.
 

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Quote from niko:

Sellers try to break out of the range, but they fail, volume increase substantially (relatively), but price does not fall, it just goes back inside the range. Buyers are unable to reach the last high, so they are not interested either.
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Slow down.

Yes, sellers fail when price drops below this range. But what does price do at 0904?
 
Quote from dbphoenix:

Slow down.

Yes, sellers fail when price drops below this range. But what does price do at 0904?
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Once again, sellers make a push for a breakout but find buyers at 89, at 9:05 the SL is broken, and buyers take prices back into the range.
 
Quote from niko:

Once again, sellers make a push for a breakout but find buyers at 89, at 9:05 the SL is broken, and buyers take prices back into the range.
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Was there an opportunity for a short on that second push?
 
Quote from dbphoenix:

Was there an opportunity for a short on that second push?
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I think the first opportunity comes at 8:37, but I wouldn't have take it, because I am not so confident on trading breakouts until the LSL is taken, and even that has not been tested so I am not so sure.

The next opportunity comes at 8:50, after sellers manage to keep prices below R at 91 and push lower forms a new RET.

The next RET comes at 8:57, but this is the one that fails.

The price levels at which I think I would have placed my orders were the magenta squares.
 

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Quote from niko:

I think the first opportunity comes at 8:37, but I wouldn't have take it, because I am not so confident on trading breakouts until the LSL is taken, and even that has not been tested so I am not so sure.

The next opportunity comes at 8:50, after sellers manage to keep prices below R at 91 and push lower forms a new RET.

The next RET comes at 8:57, but this is the one that fails.

The price levels at which I think I would have placed my orders were the magenta squares.
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OK so far. And after the short off the ret fails and price goes back into the range, what do you do?
 
Quote from dbphoenix:

. So your first task is to define it properly. (Chop)

I would define chop as a state where buyers and sellers push price way past the midpoint of each move up or down.

In this state, it's difficult to see or define who is taking the lead as there are no small retraces in one direction or the other ?
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