Trading NQ via Price Action
- Thread starter k p
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I just can't define them in precise mathematical terms. If I say that each high or low has to be within 1 point of all the previous highs or lows, then there will be some examples where price penetrates a bit further. But without the all important RET above what I say is the range extreme, then I wouldn't consider this an exit out of the range, or at least certainly nothing I should trade. So I'm back to my "visual" definition as opposed to a precise "tick by tick" definition. I get the feeling that this isn't wrong, but the important question is if based on this, I would have confidence to put on a trade.
Do you think there any shred of truth in what I'm saying? I can't recall exactly where you said this trading business can't be coded/automated but you did say something within the spirit of this if I am not mistaken. So in this sense, is it fair to say that the metrics of these definitions can't be precise to the tick? Or better yet, can you provide a definition or example for the type of metrics that you would use to define something?
Edit: For example, a trending market is higher highs and higher lows... but then would you say each high has to be at least 5 points higher? This would be crazy to say because it all depends on the range of the day or previous days, the context, and then what if you don't get a higher high... but you get a higher low still... so this might still not invalidate the trend. So a precise definition based on metrics to define an up trend is quite hard I think when it comes to picking some definite terms/metrics.
Do you think there any shred of truth in what I'm saying? I can't recall exactly where you said this trading business can't be coded/automated but you did say something within the spirit of this if I am not mistaken. So in this sense, is it fair to say that the metrics of these definitions can't be precise to the tick? Or better yet, can you provide a definition or example for the type of metrics that you would use to define something?
Edit: For example, a trending market is higher highs and higher lows... but then would you say each high has to be at least 5 points higher? This would be crazy to say because it all depends on the range of the day or previous days, the context, and then what if you don't get a higher high... but you get a higher low still... so this might still not invalidate the trend. So a precise definition based on metrics to define an up trend is quite hard I think when it comes to picking some definite terms/metrics.
Since trading your feelings hasn't worked for you, you have no choice but to "define them in precise mathematical terms." The retracement is irrelevant at this stage as is the exit. First you have to be able to recognize a range. In order to recognize it, you have to define it. If you can't explain the difference between trending and ranging, then begin there. If after n efforts you still can't explain or detect or define the difference, I suggest you investigate something like the MACD. Once a trend has presented itself, you can then transition to something else in order to manage the trade.
What kind of trader do you want to be? What are your goals/objectives?
My opinion kp is many are making this way more complicated than it has to be. Define your edge. Have an entry rule a stop you place in case of an emergency. A target of where you think the market will go. How you are going to manage your trade and a point where your edge is no longer valid and you get out. Take every trade where your edge is valid and get really good at taking small losses. You can always reenter.
Crap... my response to this would be just leading me down a circular argument where we already were, and I would hate to waste any more of your time. But dare I say, I am going with the reply that the reason it hasn't worked for me is because I didn't do what I should do based on whatever trading plan I have put together thus far. I wish I could redo the last 2 days and not take trades where I shouldn't have based on what I already do know, but since I can't do this, its impossible to say what the outcome would be. In other words, what I have done these past few days in no way reflects what I know and how I want to trade, so these results, although real, don't reflect my true intentions or understanding or trading plan.
So yes, I have been trading feelings more so without waiting for that thing that I have already seen I should be waiting for which is based on the trading plan. What I will do over the holidays is test what would happen if I did what I should do just based on these static bars and go from there.
Ok... final update here guys... and not to be rude at all as I'd love to reply to slugar and emini personally, but I feel like I'm just being back up against the wall here with having to provide answers and explain myself and I simply don't want to go down this road.
What I really want to say is that although emini and slugar both are on their own journey's, they aren't in the position to offer advice. I in no way mean to be rude, but my honest and true gut feeling and reaction is that each of us sees it differently, each of us needs something different to break through what it is we need to break through. None of you are wrong with your advice, but often its advice that has helped you with your own problem, and this might not reflect where my issues are. Furthermore, and once again, not to be rude, but I just feel that those who aren't trading with real money and have consistent positive results I have trouble answering to.
I really really don't want to come off as rude, but in some respects I don't find some of these questions helpful to me and I just want to focus on what is helpful to me. I too struggle with the idea that I need to define what kind of trader I want to be because I'm all over the place in this regard (ie. trading different time frames), and I too see that this is easy when you step back a bit and money isn't on the line. But I just don't want to listen to too many people at the moment, and dare I say, people who aren't trading size and are profitable. I in no way mean to be insulting, I just need to regain control of my path and direction.
What I really want to say is that although emini and slugar both are on their own journey's, they aren't in the position to offer advice. I in no way mean to be rude, but my honest and true gut feeling and reaction is that each of us sees it differently, each of us needs something different to break through what it is we need to break through. None of you are wrong with your advice, but often its advice that has helped you with your own problem, and this might not reflect where my issues are. Furthermore, and once again, not to be rude, but I just feel that those who aren't trading with real money and have consistent positive results I have trouble answering to.
I really really don't want to come off as rude, but in some respects I don't find some of these questions helpful to me and I just want to focus on what is helpful to me. I too struggle with the idea that I need to define what kind of trader I want to be because I'm all over the place in this regard (ie. trading different time frames), and I too see that this is easy when you step back a bit and money isn't on the line. But I just don't want to listen to too many people at the moment, and dare I say, people who aren't trading size and are profitable. I in no way mean to be insulting, I just need to regain control of my path and direction.
Yes.. I fully agree... and the first thing I will solve is if my the problem lies in not doing what I should do, or not knowing what to do. Maybe I'm just protecting my ego, and if this is the case, I will face this. But I do believe that up till now, the crappy results are a lack of discipline and not a lack of understanding. But if I'm wrong... I am more than willing to take a step back if need be, I just have to really figure out where I'm at.