Price Action - NQ II
- Thread starter lajax
- Start date
March 7th
Prep - Context
Plan the trades.
Trades
Red dot: Short
Green dot: Long
Black dot: Exit
Trade Point of view
In the first trade, the price do what is expected to do (confirmed the RET), however the trade was discarded because the price reversed by more than the 50% of the fall and even went above one tick of the previous high (Stopped the trade, if it had been open)
PA Point of view
However, from the Price action Point of view, the traders confirmed their willingness to start a downward movement (RET confirmed), and his intention remained, because despite the fact the SL was spike it was not broken. Notwithstanding, of all this action I was out of the market and the fall that came after really hurts me
Prep - Context
Plan the trades.
Trades
Red dot: Short
Green dot: Long
Black dot: Exit
Trade Point of view
In the first trade, the price do what is expected to do (confirmed the RET), however the trade was discarded because the price reversed by more than the 50% of the fall and even went above one tick of the previous high (Stopped the trade, if it had been open)
PA Point of view
However, from the Price action Point of view, the traders confirmed their willingness to start a downward movement (RET confirmed), and his intention remained, because despite the fact the SL was spike it was not broken. Notwithstanding, of all this action I was out of the market and the fall that came after really hurts me
March 10th
Prep - Context
Plan the trades.
Trades
Red dot: Short
Green dot: Long
Black dot: Exit
So far is important to have in mind the next aspects in order to include them in the trading plan:
- Understand the Preliminar support after the BO of the TR/Observe how many times this happened
- Plan a reentry strategy when the PA is still showing the hand of the market, but the trade was stopped out because it was in a position that was affected because of the phenomena of the prices. eg a preliminar support.
Prep - Context
Plan the trades.
Trades
Red dot: Short
Green dot: Long
Black dot: Exit
So far is important to have in mind the next aspects in order to include them in the trading plan:
- Understand the Preliminar support after the BO of the TR/Observe how many times this happened
- Plan a reentry strategy when the PA is still showing the hand of the market, but the trade was stopped out because it was in a position that was affected because of the phenomena of the prices. eg a preliminar support.
The indicators? None. But you are now in a position to answer your questions with data rather than opinion, whether yours or others'. I'm sure there are other, unanticipated questions which arose during the process, but this is one of the chief advantages of the process. For example, you can now determine, or begin to, the importance of the PDH and PDL, the ONH and ONL, various past swing points in various intervals and so forth. You can determine whether or not they are important only in terms of where price is most likely to stall or in terms of potential reversal levels. And though you're not interested in REVs per se right now, the RETs that occur after the REV will be of interest.
I suggest you begin by reviewing your original questions and restating them one two three. Then also list those questions that arose during your testing, such as why did price turn at that particular level and not some other? Why did a particular exit turn out to be premature? Keeping in mind that all charts are tick charts, how best can you choreograph the "views" of for example the 1m and 5m and 60m so that you are in continuous synch with the market? When for example does a swing point on the 1m become important even though it's not visible on the 5m? When can it be only acknowledged and when must it be acted upon?
When RETs are actionable has been a challenge to Dunnigan, Ross, Douglas and others, as well as Wyckoff, so you are in good company. Don't be discouraged by the puzzlement. And ask yourself periodically whether or not you are throwing virgins into the volcano. This stage is particularly fertile for drawing incorrect conclusions and setting off in the wrong direction.
I suggest you begin by reviewing your original questions and restating them one two three. Then also list those questions that arose during your testing, such as why did price turn at that particular level and not some other? Why did a particular exit turn out to be premature? Keeping in mind that all charts are tick charts, how best can you choreograph the "views" of for example the 1m and 5m and 60m so that you are in continuous synch with the market? When for example does a swing point on the 1m become important even though it's not visible on the 5m? When can it be only acknowledged and when must it be acted upon?
When RETs are actionable has been a challenge to Dunnigan, Ross, Douglas and others, as well as Wyckoff, so you are in good company. Don't be discouraged by the puzzlement. And ask yourself periodically whether or not you are throwing virgins into the volcano. This stage is particularly fertile for drawing incorrect conclusions and setting off in the wrong direction.
Ok Db, for now I will follow your advice and make a review of the process so far.
Once again thank you for reviewing my work and for your time.