Trading the NQ

This is a discussion on Trading the NQ within the Trading Journals forums, part of the Reception category; BTW- Using SLA I entered JPM long yesterday afternoon....

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Old May 10, 2018, 7:27pm   #271
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BTW- Using SLA I entered JPM long yesterday afternoon. Click the image to open in full size.
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Old May 10, 2018, 7:37pm   #272
 
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BTW- Using SLA I entered JPM long yesterday afternoon.
Actually, using the SLA you would have entered at 105 on the 3rd or 4th, but you may not have read the pdf then. And as you are approaching the median of your trend channel, pay close attention to the price behavior.
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Old May 10, 2018, 7:46pm   #273
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Actually, using the SLA you would have entered at 105 on the 3rd or 4th, but you may not have read the pdf then. And as you are approaching the median of your trend channel, pay close attention to the price behavior.
Roger!!!!!!!
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Old May 10, 2018, 8:03pm   #274
 
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dbphoenix started this thread For the sake of consistency, and accuracy, I should point out that SLA analysis always begins with the weekly. Drawing my own chart off StockCharts.com without the colors, I see that your lines are just ever so slightly off, which is not uncommon when drawing trendlines in hindsight. The lower limit of the trend channel, both weekly and daily, on the 3rd, was about 103.5. Given that the selling pressure lessened after the 13th, 105 may be close enough, and obviously was. However, the fact remains that entering here carries far more risk than entering at the trading opportunity itself. If buyers complete their business at this level, I would think twice about lingering.
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Old May 10, 2018, 8:54pm   #275
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Originally Posted by dbphoenix View Post
For the sake of consistency, and accuracy, I should point out that SLA analysis always begins with the weekly. Drawing my own chart off StockCharts.com without the colors, I see that your lines are just ever so slightly off, which is not uncommon when drawing trendlines in hindsight. The lower limit of the trend channel, both weekly and daily, on the 3rd, was about 103.5. Given that the selling pressure lessened after the 13th, 105 may be close enough, and obviously was. However, the fact remains that entering here carries far more risk than entering at the trading opportunity itself. If buyers complete their business at this level, I would think twice about lingering.
Keep a sharpe eye on the median of the trend channels so I at least make some $. I changed the width of the lower trend line to the smallest width. Looks better but still not prefect.
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Old Jun 4, 2018, 8:14pm   #276
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Today I entered short Barrick gold;

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My technical reasons are based on AMT, price finding strong selling at previous support, now resistance, around 13,8.

But I find myself requiring more than a technical signal to enter a trade. Iīm not sure if Wyckoof or DB would approve of this but my best trades always come along with a fundamental reason. To me, the realm of charting seems so sterile that I need to color it with a backstory.

In this case, I think cryptocurrency is starting to cannibalize gold and silvers "store of value" market cap. I donīt think it is a coincidence that both precious metals peaked around the same time when bitcoin started being traded. Since most of the PMs market cap is driven by store of value seekers, one might anticipate lower prices as cryptocurrencies gain prominence.
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Old Jun 5, 2018, 2:38pm   #277
 
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Today I entered short Barrick gold;

My technical reasons are based on AMT, price finding strong selling at previous support, now resistance, around 13,8.

But I find myself requiring more than a technical signal to enter a trade. Iīm not sure if Wyckoof or DB would approve of this . . .
My approval is not necessarily relevant. But this thread is about trading the NQ using the SLA. Since you have a journal, I suggest you post non-NQ charts and trades there, particularly if they aren't in line with the SLA.
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Old Jun 6, 2018, 12:32pm   #278
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My approval is not necessarily relevant. But this thread is about trading the NQ using the SLA. Since you have a journal, I suggest you post non-NQ charts and trades there, particularly if they aren't in line with the SLA.
It could be relevant but it certainly isnīt necessary. But this is your thread after all and you have done a great job disclosing and spreading Wyckoffs wisdom here and in many other forums.

CHeers amigo

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Old Jun 11, 2018, 5:24pm   #279
 
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NQ Weekly

This is how I am looking at the weekly. Price is around the median and moving upwards towards the top of the trend channel. The previous swing high is around here but supply hasn't shown much gumption so far to indicate it's something significant. Maybe someone else has a better view but for me it's time to remain patient.

Gringo

p.s The TC needs to be adjusted after the NH.
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nq-week.png  

Last edited by Gring0; Jun 11, 2018 at 5:35pm. Reason: Added post script
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Old Jun 11, 2018, 5:58pm   #280
 
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This is how I am looking at the weekly. Price is around the median and moving upwards towards the top of the trend channel. The previous swing high is around here but supply hasn't shown much gumption so far to indicate it's something significant. Maybe someone else has a better view but for me it's time to remain patient.

Gringo

p.s The TC needs to be adjusted after the NH.
Remember why Wyckoff drew these channels in the first place. A chief reason was to provide a graphic display of overbought and oversold conditions, defined as those which drop below or rise above the channel (though Wyckoff didn't phrase it as such, this is what Steidlmayer was referring to with regard to value and how far traders will move away from it before returning to the median). Altering the trajectories of the upper and lower limits of the channel should be done only if absolutely necessary. Otherwise, all that information regarding overextension is lost and the channels become relatively useless.

I know you follow this in real time, but take care not to draw these in hindsight just for the sake of shortcutting or summarizing anything. Knowing when to alter these channels in real time is challenging, and one has to focus on trader behavior as manifested in the bars rather than on lines. Even then, one can't be too eager to jump in. There will nearly always be tests of one sort or another.

In this case, go back to your beginning, with the demand line drawn from February '16 to June '16. Draw a parallel supply line. This will stretch from April '16 to July '16 and beyond. Extend this line. Traders break through it the following February. Is this line tested afterward? When? What is the result of the test?
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Old Jun 12, 2018, 4:11pm   #281
 
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Originally Posted by dbphoenix View Post
Remember why Wyckoff drew these channels in the first place. A chief reason was to provide a graphic display of overbought and oversold conditions, defined as those which drop below or rise above the channel (though Wyckoff didn't phrase it as such, this is what Steidlmayer was referring to with regard to value and how far traders will move away from it before returning to the median). Altering the trajectories of the upper and lower limits of the channel should be done only if absolutely necessary. Otherwise, all that information regarding overextension is lost and the channels become relatively useless.

I know you follow this in real time, but take care not to draw these in hindsight just for the sake of shortcutting or summarizing anything. Knowing when to alter these channels in real time is challenging, and one has to focus on trader behavior as manifested in the bars rather than on lines. Even then, one can't be too eager to jump in. There will nearly always be tests of one sort or another.

In this case, go back to your beginning, with the demand line drawn from February '16 to June '16. Draw a parallel supply line. This will stretch from April '16 to July '16 and beyond. Extend this line. Traders break through it the following February. Is this line tested afterward? When? What is the result of the test?
Those red channels aren't adding much to my understanding. Price has left the orbit and is so far away from them that I am not sure about the relevance.
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Old Jun 13, 2018, 2:52pm   #282
 
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NQ Daily

Here's the NQ daily with TC as I see it.
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