Here is how I trade NQ. This is a long only strategy.
Stop Loss : 2 pts.
Target: 8-9 points.
Set-up:
1 Min chart and 5 Min Chart with 4 period High-Low Price Channel.
Entry:
Step 1: Price needs to go below 4 P low.
Step 2: Wait till you get a bar that does not make a new low.
Step 3: Price needs to go below the previous low from Step 1 and has to be a down bar.
Step 4: Wait till you get a bar that does not make a new low.
Step 5: Look at the 5 min chart and make sure that the low from step 4 is above the 4 P low on the 5 min chart.
Once all the conditions are met buy at 0.5 above the low from Step 4.
Stop Loss: 2 points
Target: Low of 5 min chart + 10 points.
Trailing Stop: Once price goes above the high on the 5 min chart, your stop will be the low of 5 min chart.
Here is an example. This is from yesterday and it is the June contract.
All times are CST.
Step 1: At 13:24, the low is lower than the previous 4 P low. Next 2 bars make a lower low. The low is 1477.25.
Step 2: At 13:27, price DOES NOT make a lower low.
Step 3: At 13:31, the low (1476.75) is below the previous low (1477.25) from Step 1 and the bar is a down bar.
Step 4: At 13:32, the price DOES NOT make a new low.
Step 5: Now let's look at the 5 Min chart and make sure that the low 1476.75 is above the 4 P low.
Step 5 Contd: The current low is 1476.25 which is lower than our low of 1476.75. This is our entry signal.
Buy-limit 1477.25
Stop: 1475.25
Target: Current 4 P low (1476.25+10) = 1486.25
The chart below shows what the market did.
There were 2 set-ups this morning. The first one was at 8:28 CST and the second one was at 12:16 CST and both were profitable.
Stop Loss : 2 pts.
Target: 8-9 points.
Set-up:
1 Min chart and 5 Min Chart with 4 period High-Low Price Channel.
Entry:
Step 1: Price needs to go below 4 P low.
Step 2: Wait till you get a bar that does not make a new low.
Step 3: Price needs to go below the previous low from Step 1 and has to be a down bar.
Step 4: Wait till you get a bar that does not make a new low.
Step 5: Look at the 5 min chart and make sure that the low from step 4 is above the 4 P low on the 5 min chart.
Once all the conditions are met buy at 0.5 above the low from Step 4.
Stop Loss: 2 points
Target: Low of 5 min chart + 10 points.
Trailing Stop: Once price goes above the high on the 5 min chart, your stop will be the low of 5 min chart.
Here is an example. This is from yesterday and it is the June contract.
All times are CST.
Step 1: At 13:24, the low is lower than the previous 4 P low. Next 2 bars make a lower low. The low is 1477.25.
Step 2: At 13:27, price DOES NOT make a lower low.
Step 3: At 13:31, the low (1476.75) is below the previous low (1477.25) from Step 1 and the bar is a down bar.
Step 4: At 13:32, the price DOES NOT make a new low.
Step 5: Now let's look at the 5 Min chart and make sure that the low 1476.75 is above the 4 P low.
Step 5 Contd: The current low is 1476.25 which is lower than our low of 1476.75. This is our entry signal.
Buy-limit 1477.25
Stop: 1475.25
Target: Current 4 P low (1476.25+10) = 1486.25
The chart below shows what the market did.
There were 2 set-ups this morning. The first one was at 8:28 CST and the second one was at 12:16 CST and both were profitable.