Trading NQ Using PA Only

Quote from deaddog:

Why the fixation on the TRIN?

The heading is Trading NQ using PA only.
The NQ follows the Nasdaq 100.
The TRIN follows all stocks on the Nasdaq.
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I did pretty good the last 3 months when the market was basically up.....On down days and rangebound days I do not do as good. I just need something to filter that out. I'm still following the same set-up but will not take the long trade if the NQ TRIN is greater than NYSE TRIN.

This would have kept me away from the market on days like yesterday where I had two losses in no time.

This is still a WIP...since I do not trade everyday due to other obligations.
 
Why not just a trend line?

Depending on your timeframe throw a 50 ma, or whatever suits you, on a 5 minute chart.
Only take Long if you're above and short if you're below.
 
Quote from eminitrader007:

L 63
S 62
T 73.5

NYT 1.09
NDT .99
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came down to 63.25.

TRIN is below 1 on NY and ND....so now we can use the regular set-up...assuming that TRIN does not go back up over 1.
 
Quote from eminitrader007:

L 66.75
S 64.75
T 73.25

I'm NOT taking this trade because the RR is 6.5 to 2. I need 8 to 2.
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Buy Limit 64.5
S 63.5
T 73.5


Cancel...It's a bautiful day outside. This weeks sucked bad but the losses were minimal; few hundred dollars but the education was priceless...

Hopefully it will be better next week.

Good Luck to everyone else.
 
You have good discipline not to over trade and lose too much. I like your setups, I actually trade pretty close to this on NQ and come back to your thread later on seeing I had some of the same exact entry points.

Keep the posts coming!
 
There is one observation that I made after watching the TRIN...please share with us if anyone has noticed the same.

Today at 9cst, NQ made a new high and NYSE and ND TRIN were below 1. At 9.55 as NQ was making a new high TRIN was above 1. This told me that we might be looking at a reversal. I cancelled my buy-limit order and NQ had a nice reversal.

Similarly, At 13:20 when NQ was making a new RTH low TRIN were below 1....this signaled that we could see a reversal and we made a low few bars later.

I noticed the same thing yesterday at 8:40(low) and 9:15(high) cst.

I think I am going to apply this to my daily trading.

Since I'm buying pullbacks I want the TRIN to be less than 1 as market is making a new high.
 
Quote from eminitrader007:

There is one observation that I made after watching the TRIN...please share with us if anyone has noticed the same.

Today at 9cst, NQ made a new high and NYSE and ND TRIN were below 1. At 9.55 as NQ was making a new high TRIN was above 1. This told me that we might be looking at a reversal. I cancelled my buy-limit order and NQ had a nice reversal.

Similarly, At 13:20 when NQ was making a new RTH low TRIN were below 1....this signaled that we could see a reversal and we made a low few bars later.

I noticed the same thing yesterday at 8:40(low) and 9:15(high) cst.

I think I am going to apply this to my daily trading.

Since I'm buying pullbacks I want the TRIN to be less than 1 as market is making a new high.
More...

Here's a little tip.

You don't know whether your observation is a "possible" edge or fools gold after you have seen the correlation over 100-200+ of such observations. I personally like to see more than 500 observations before I'm really comfortable.

You're making a typical rookie mistake called the "crime of small numbers" by running out to trade something you saw in the market after only a few observations.

Following the above rule will save you a lot of $$ in unecessary trades.
 
Quote from monti1a:

Here's a little tip.

You don't know whether your observation is a "possible" edge or fools gold after you have seen the correlation over 100-200+ of such observations. I personally like to see more than 500 observations before I'm really comfortable.

You're making a typical rookie mistake called the "crime of small numbers" by running out to trade something you saw in the market after only a few observations.

Following the above rule will save you a lot of $$ in unecessary trades.
More...

I know that 4 observations are insignificant, but this was mentioned by Gary Smith in "How I trade for a Living" too. I used to watch the NYSE TRIN long time ago.....but did not find the readings to provide an edge but adding ND TRIN seems to work.

If you had been following this thread, you might have noticed that I had all losers last week and the TRIN would have kept me away from the market.
 
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