Friday 25th April 2014 NQ100 1 min chart review The best time to enter the market may have been in the premarket, especially since most of my analysis favoured a fall in price today. But thats for another time. 1. Opened down to 54 and turned, we then moved between the opening low and high for a while. 2. We could have entered a short here on the retracement, or some minutes later when price turned back up to reject 50% of the fall. . 3. Price halted its decline at yesterday's low, where we were watching for a reaction. Moved into an 8 point range between 43 and 51. 4. We eventually broke out after 30 minutes of ranging, and had a quick retracement for a short. This worked out well and never came back to the range. 5. The fall stopped above 26, and the price moved sideways for a while. 6. We eventually reached 18 in slow steps. This is close to previous lows, and we turned here and broke the support line.
Monday 28th April 2014 pre-market review Over the past 2 weeks we have retraced more than 50% of the drop from early March from 3740 to 3405. But after a few attempts to stay above 72 over the last week, we have fallen well below this this on Friday. In the morning we have tested the 45 mark from below a number of times. This was a previous turning point for price and provided temporary resistance on friday. The failure to get above this level indicates downward pressure on price for now. We are heading back towardsthe overnight range, and if we continue we have Fridays low of 516 to watch. This has already provided resistance so we may find at least a temporary halt to the movement of price if it falls to that level. If we just pass straight through, then it will indicate further weakness. If we rally above 45 at the open, we can look for an attempt to gain back the price levels from last week. On the long range scanner our last attempt to get below 3400 failed, and this appears to be a point of interest to traders. Interesting to see if it will be tested again this week.
Monday 28th April 2014 NQ100 1 min chart review I had a day where I prepped and understood the levels, but didn't react quickly enough, and entered at the wrong points. The day should have been a lot easier than I made it. I'll take the learnings into the rest of the week. Before the open we reversed at 32, the 50% point of the low of 16 to the morning high of 47. We then moved up but couldn't hold above 42. All signs were pointing to down at the open. 1. On the open we price rejected 45 and fell sharply. Although I had indicated 45 in my prep, when it opened I thought it might reach the high of 47, and didn't react quick enough. I then waited for a retracement that didn't come except on the tick charts. 2. We eventually halted at 22 and retraced without breaking the support line, for a possible short. This was stopped out. 3. After missing the open and getting a failure of the short, I felt that I maybe not in the zone today. Should have picked up a long here, only seen in hindsight. 4. With the double top rejection of the highs, I looked for a short, which would have stopped out quickly. After that the price moved up without any problems at 48. 5. We stopped at 62 and the bars got smaller, until eventually we had a break downwards. If the break isn't taken then there are SLA entries further on that would work.
Tuesday 29th April 2014 NQ100 1 min chart review Busy day yesterday, ranged from 562 down to 480, with strong trends right until the daytime close. We made it through the lows at 516, but could not get past a previous swing low at 480. From the lows we made a consistant trend upwards to close where we opened. Overnight we have moved between from 536 up to 559, with a midpoint at 548. So far we have not reached yesterday's high of 562, but have come very close. The immediate trend seems to be upwards. In the morning price has moved to the middle of the overnight channel, and we will have to wait and see which side of the channel is tested first.
Tuesday 29th April 2014 NQ100 1 min chart review A day for wandering around the mean within our overnight range. The buyers and sellers, were mianly agreed on value today, so no crazy trends to the moon happened. I probably looked at too many entries today, but I felt in a better zone than yesterday. I took retracements when I saw them and some reversals that maybe I shouldn't have. The reversal after failing to break out of the range was the best one to take. Better than yesterday, but not as good as tomorrow. 1. Opened around the middle of the overnight channel. I took the short off the turn rejection of 56, after missing the reversal yesterday. 2. It made it to 38 before reversing again. Given the bottom of the range was around 36, I felt this rejection could be the opportunity for a long. 3. I stayed out then until we tried to get out of the overnight range and reach yesterday's high. This breakout failed quickly and, so entered a short at 57. 4. The downward move stopped at 43 and then turned quickly and reached the 50% point before failing. The rejection of the 50% was the opportunity for a short, which would have stopped out on the next bars. 5. Again a retracement entry which fails. 6. Now with the supply line broken and retracement we have the opportunity for a short, which is stopped out. 7. The supply line has broken and we have a retracement. I like these entries. The long here should be at 41, but I was a bit late and would have got 42.
"It" doesn't "do" anything. This may not be what you intended to say, but, just on the offchance that it was, you're looking at this in entirely the wrong way. The purpose of the lines is to guide the trader to an understanding of the interplay between supply and demand against the backdrop of an auction market. Anyone who's still using these lines after several weeks isn't getting it, and some have been using them for months. The key question is "Where are traders able/unable to find trades?" If instead one is examining lines, then he has not yet taken that step into the trading arena.
Looks like you are getting pretty good at this, are you actually placing the trades in ninja or just marking them with dots and triangles as they appear.? I just ask, because it makes a huge emotional difference for me.