Trading the NQ: Take 2
- Thread starter k p
- Start date
Oh yes please!
Morning
Assuming KP is okay with it..., I'll dig up some examples of both and post
Who knows..., maybe PA will create some today that I can capture and post
Trade well
RN
Ubo
In the meantime please define the following
Pullback
Retrace
Retest
This way we're speaking the same language
Thx
RN
Dear Redneck,
Off the top of my head,
Pullback would be defined in the context of a series of trending bars and the first break of a bar in the opposite direction to the trend. A pullback would consist of a series of bars in the countertrend direction. We expect the pullback to turn back in the same direction as the trend.
Retrace is defined in the context of a trend or trading range but more so in the latter. So it's like a pullback except it can go further than a pullback for example in the trading range.
Retest is refers to the test of a breakout level to confirm that support has indeed turned into resistance or vice versa. Or could refer to a trend reversal double top or double bottom aka two test failure and price goes in the opposite direction.
Off the top of my head,
Pullback would be defined in the context of a series of trending bars and the first break of a bar in the opposite direction to the trend. A pullback would consist of a series of bars in the countertrend direction. We expect the pullback to turn back in the same direction as the trend.
Retrace is defined in the context of a trend or trading range but more so in the latter. So it's like a pullback except it can go further than a pullback for example in the trading range.
Retest is refers to the test of a breakout level to confirm that support has indeed turned into resistance or vice versa. Or could refer to a trend reversal double top or double bottom aka two test failure and price goes in the opposite direction.
So going into today, a steady climb to new highs, and we were opening up very close to overnight high.
Quick drop down at the open, I wait for a tiny pause/retrace, then short. Gets stopped out quickly.
I see price drop below the opening high again, but this drops stops quickly, forming even a higher low, so I go long. The 2 pt stop loss happens to be a tick above that previous swing low, so I'm not happy about this, and to play it safe, I could have given it a couple of more ticks since this is legitimate reason to move a stop in my books as you do want to stop to at least be beyond some area that would dictate your trade isn't working. No time to move it. It gets stopped out, 1 tick slippage, and price recovers right away. Isn't that a bitch! Had the stop been moved, I note that a BE trade would have been possible, but as per i960's suggestions, I should just leave trades alone and a 2 point stop really isn't that much, so it would have been stopped out anyway.
After 2 trades trying to play the opening, its time to slow down.
I'm fully aware that on the 1 min chart, we have a nice series of higher lows, but I mark some possible shorts based on the possible R at the opening high. There is clearly some resistance here, but I'm not surprised to see price come back up, and even a 5 point target couldn't be hit.
At the ONH, I'm reluctant to do anything. Volume is non existent, so any move, in my opinion, will more than likely not have enough power behind it to give me my 10 points profit in the 3 minutes that I expect!
If anything, doing the opposite of what I want to do is often the profitable trade.
Good thing I stayed out... there is nothing to work with. (or rather, everything I would normally do would have failed)
(hope this review is short enough fortiwinks!)
Quick drop down at the open, I wait for a tiny pause/retrace, then short. Gets stopped out quickly.
I see price drop below the opening high again, but this drops stops quickly, forming even a higher low, so I go long. The 2 pt stop loss happens to be a tick above that previous swing low, so I'm not happy about this, and to play it safe, I could have given it a couple of more ticks since this is legitimate reason to move a stop in my books as you do want to stop to at least be beyond some area that would dictate your trade isn't working. No time to move it. It gets stopped out, 1 tick slippage, and price recovers right away. Isn't that a bitch! Had the stop been moved, I note that a BE trade would have been possible, but as per i960's suggestions, I should just leave trades alone and a 2 point stop really isn't that much, so it would have been stopped out anyway.
After 2 trades trying to play the opening, its time to slow down.
I'm fully aware that on the 1 min chart, we have a nice series of higher lows, but I mark some possible shorts based on the possible R at the opening high. There is clearly some resistance here, but I'm not surprised to see price come back up, and even a 5 point target couldn't be hit.
At the ONH, I'm reluctant to do anything. Volume is non existent, so any move, in my opinion, will more than likely not have enough power behind it to give me my 10 points profit in the 3 minutes that I expect!
If anything, doing the opposite of what I want to do is often the profitable trade.Good thing I stayed out... there is nothing to work with. (or rather, everything I would normally do would have failed)
(hope this review is short enough fortiwinks!
)Attachments
You're absolutely right that they are in the middle. One other little part that I am trying to work on is the opening.. just seeing if I can get into a move from the opening that will then reach one of the other key levels that I am looking at.
This clearly isn't working for me, and the few times that price might trend right off the bat and I get in, those days when it doesn't, I think I'm losing far too much to make up for it. Perhaps if I waited for a few minutes for things to settle down, but then this wouldn't be playing the opening.
Just before I went to go take my nap, I could see that although the overnight high didn't provide a clean entry (for a long or short), once price did drop back down below, well... look at those 30 points lower. The problem for me was that it penetrated by 4 points above the ONH to almost make it looks like a BO, and then "hung out" just below the ONH, so no real direction. I did actually think of shorting right here where I indicate based on the fact that it was the lowest risk entry for a short. We are below the ONH, this is at the top of the little range, so if a short will eventually work, then this would be the most ideal place. Of course I didn't place it, I saw price drop, and then I went to sleep.
Anyway, your point obviously is that I didn't wait for key levels before putting on trades, and this is absolutely true, but I was following an idea of what I'm looking to do, but this clearly I should abandon until I can hammer out some decent consistency at the key levels.
Last edited:
For all intense purposes..., and pragmatically speaking for actual trading - they are all the same
Let the academics of the trading world argue semantics
One... or the other may be deeper (last longer than the other(s))..., may occur sooner..., than the other(s)
But no matter - price heading one way..., it then goes back opposite..., it then continues heading in the original
KISS Ubo..., always KISSSSSSSSS
==============
I enter long on a B/O up (trading B/O signal)
oh shit price breached the top of the range - no worries - I'm in long on a PB/ retest/ retrace to the 50% line (now trading PB signal - same trade mind you)
oh shit - price breached the 50% - no worries - I'm in long on a breach of the bottom of the range (now trading a range - same trade mind you)
oh shit - price breached the bottom of the range - no worries - Support is just a few MORE ticks away (now trading Support - same trade mind you)
oh shit price just breached the Support - no worries - the TL/HL just a few ticks away (now trading the TL - same trade mind you)
oh shit..., oh shit.., oh shit..., oh shit
1 trade - 5 separate signals..., and who can say how many more signals will materialize
==============
It should come as no shock to anyone..., that I am dead nuts adamantly against switching one's Trading TF while in a trade..., or even during a session
Swapping up trade signals is no different
We enter for a "specific" reason (signal)
We get the hell out when that "specific" reason (signal) no longer valid..., has been invalidated / breached
RN
Last edited: