Trading the NQ

barjon

Legendary member
10,167 1,515
Slightly off piste the October/December down move retraced almost smack on 50% of the long up move that started in Feb 16. We recovered about 50% of that down move and backed off from it on Tuesday only to get back to it again yesterday. At an interesting point.
 
NQ is signalling a potential SLA entry, break of the DL plus double top, allthis taking place at the 50% retracement as barjon noted. I prefer to wait for a Lower High to enter, something like this;

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Lindsaybev

Junior member
30 7
Howdy. Hope everyone is well. Still working on my rules.

I have a question about ranges (more like chop on my daily chart). I am trying to practice "narrating" what is taking place on a chart, trying to decipher who is running the show at each point. Upward and downward action is a lot easier, obviously, than sideways.

For an example, let us say that the Daily chart is currently in an uptrend trend, and I have a DL in place. Then at some point the DL gets crossed over, but price does not turn down, it then travels more or less sideways. Knowing that it is normal and healthy for there to be pullbacks on an upward trajectory, so even a downward traveling price is ok (at least in my current rule of using the halfway point as a barometer of how far I will allow price to travel before getting out)....what should I think of sideways movement?
  • Is price showing an area where Buyers are no longer willing to buy, stopping the upward movement, and therefore weakness....
  • Is price showing an area where Buyers are supporting it at that area and an inability of supply to push the price downwards, and therefore strength?
Does it vary depending on context? (ie: I should be more leary at the top of trend channel of it being weakness versus if it took place at the bottom of trend channel, where there is a higher probablity of it being strength? Is "chop" considered the "Dog not barking?" as it is not going one way or the other.)

I am calling it chop as there is not enough of a range to trade it on a daily chart...but neither is it falling. Just wonder if this is showing more strength at an area where people are "searching for equilibrium" vs. a break and then the price travels downward.

Hope all you day traders enjoyed the big run yesterday!
 
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Lindsaybev

Junior member
30 7
One last Q: Am I supposed to be transferring my Trend Lines from the Weekly onto the Daily....and also doing Daily Trend Lines on the same chart? Or should I be doing each separately on their own charts (this is how I have been doing it)?
 

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