Trading the NQ

[dbphoenix]

Price falls out of the hinge just after 1031 and there's a retracement, which provides the opportunity to enter a short. However, the sellstop is never triggered because price doesn't fall far enough. So, patience.

The stride is then broken, so I look for an opportunity to go long. Price falls, makes a higher low, and I enter five points above this level. Price then re-enters the range and stalls at the median, which is where I retire (and price waffles around here for nearly two hours).

 

[mpups]

did i spot one on the S&P ??



this is the city index price feed btw!

 

[barjon]

Price falls out of the hinge just after 1031 and there's a retracement, which provides the opportunity to enter a short. However, the sellstop is never triggered because price doesn't fall far enough. So, patience.

The stride is then broken, so I look for an opportunity to go long. Price falls, makes a higher low, and I enter five points above this level. Price then re-enters the range and stalls at the median, which is where I retire (and price waffles around here for nearly two hours).

Hi db,

I didn’t trade this at all, but I was interested in the initial short opportunity which never came as price doesn’t fall “far enough”. I would have entered short when the low of your red arrowed bar went, or 6 bars later at the new low. What do you have in mind for “far enough” or is that a discretionary thing?

 

[dbphoenix]

Hi db,

I didn’t trade this at all, but I was interested in the initial short opportunity which never came as price doesn’t fall “far enough”. I would have entered short when the low of your red arrowed bar went, or 6 bars later at the new low. What do you have in mind for “far enough” or is that a discretionary thing?

Five points below the retracement high. See post #180.

 

[barjon]

Five points below the retracement high. See post #180.

Ok, thanks

 

[dbphoenix]

As there have been no other questions, I see no reason not to wrap this up as everything that needs to be said has been said. I hope that those who are at least marginally interested in this will continue their studies as the profit potential is rather high, at least to me, certainly miles away from the loss column. Wednesday, for example, the subject of Jon's question, as of 1100ET wound up with a win rate of 80% and a profit to loss ratio of 14.4:1 (there were additional points to be made after 1245ET). I should think that that would motivate at least some investigation.

The Wyckoff Template: post 69
Climaxes & Tests: 70
Trading Ranges: 81
Trends & Reversals: 130
Hinges: 134

 

[barjon]

As there have been no other questions, I see no reason not to wrap this up as everything that needs to be said has been said. I hope that those who are at least marginally interested in this will continue their studies as the profit potential is rather high, at least to me, certainly miles away from the loss column. Wednesday, for example, the subject of Jon's question, as of 1100ET wound up with a win rate of 80% and a profit to loss ratio of 14.4:1 (there were additional points to be made after 1245ET). I should think that that would motivate at least some investigation.

The Wyckoff Template: post 69
Climaxes & Tests: 70
Trading Ranges: 81
Trends & Reversals: 130
Hinges: 134

Db, it would be a great pity if you stopped drawing attention to the lessons you have given us as they continue to occur.

If, however, that is your wish then can I thank you on behalf of everyone who has drawn so much from your words. Whether they are people who have participated in the thread or who have watched and learned from the sidelines.

 

[chrisg]

Db, it would be a great pity if you stopped drawing attention to the lessons you have given us as they continue to occur.

If, however, that is your wish then can I thank you on behalf of everyone who has drawn so much from your words. Whether they are people who have participated in the thread or who have watched and learned from the sidelines.

I very much agree with both these points.

Thank you,DB,for your posts. (which I treat as mentorship) This 'term' has been great.

kind regards

 

[wallstreetwarrior87]

Agreed, some good stuff on here to get your teeth into. Plenty of info to think about and to get a reflection of the powers that be. :smart:

 

[Gring0]

I want to quickly remind that all this analysis presupposes an ability to read price left to right. This ability is developed by watching live price move. I'd go as far as to say at times the pre-decision and post-decision chart becomes unrecognizable (doesn't look the same) very quickly with the change in scale as a result of time and price movement.

I have spent a long time in doing this static analysis and I had been pretty good at it, good enough to even fool myself. Avoid the trap of believing the picture perfect setups appear the same at decision time. When Db would point out this left-to-right vs right-to-left reading of chart it wouldn't get through to my head until going live cleared me of all illusions about invincibility and marksmanship.

Gringo

 

[Gring0]

It's curious that ES has shown such decisive strength yet NQ is treading water.

 

[barjon]

It's curious that ES has shown such decisive strength yet NQ is treading water.

Yes, traded very weak against Dow Tuesday and even more yesterday where nas went down the equivalent of over 400 Dow points, but Dow went up over 100.

On holiday but can’t resist a pair trade on the SB cash.

£1 short Dow @ 23979
£4 long nas @ 6304

 

[mckaldey]

An effortless morning for the SLA.

Climaxes and tests and hinges, oh my!

Dear DB,

thanks for all the great posts which for me were clearifying topics like hinges and climaxes further.

In terms of the chart above, what do you mean by 5 point entry, 3 point stop?
As far as I can see you take the entry after a certain move away from what seems to be support or resistance? I know that in terms of the continuity of price the timeframe is more or less providing a certain perspective. But in terms of analysis and entry you are approaching the session by examining weekly, daily, hourly and then trade off 1M and 10S?

Thanks a lot for the continuation of your great work.

 

[mckaldey]

Sorry DB,

is it that, what you mean?

In general it means that after a break of the stride with more than 5 points a change in sentiment is more likely and acts as a confirmation of the prelocated levels?

In terms of backtesting, did I do the measuring correct?

 

[chrisg]

Hi Mc
DB's post 204 will help you.

 

[mckaldey]

Thanks Chris,

I read that, but thought that I need a bit more clarification.

 

[Gring0]

There is quite a bit of energy in the moves propelling price higher. Despite that it doesn't hurt to keep things in perspective for any potential changes to the tune.

Gringo

 

[Gring0]

NQ has reached the top of weekly trend channel. The daily didn't hold so I have removed it. Being at this level doesn't mean a drop is guaranteed. It only means the probabilities are not as favourable to the upside. The main large trend is still up.

The hourly shows some kind of a reaction when price reached close to the weekly trend channel. For me it's time to stay alert.

Gringo

 

[neil]

Chap called Divergence might be worth reading about regarding how he trades.

 

[kalott]

nice volatility