I use prior day's range, and length of runs/moves from prior day to help with targets in current day.
Thanks. I trade volatility only, so in some sense I have a strong intuition on where the levels will go, and I just take whatever price I can get based on the level i think it wont breach. I know lots of people got blown up doing this for years thinking a spike would never happen before march 2020 but i think those were funds with massive piles of money that isnt easy to move. I'm also working on an implementation of a model which perfecly calibrates to spx/vix jointly so I should be able to take on more risk with more confidence when i get that done. basically selling crash insurance to some morgan stanley managers of billions or something, dunno who the counterparty is on the trades. a few times I got surprised but was able to trim the position or hedge and havent got hit yet
Hello mikeriley, Do you think it is possible to: 1. Make $200 per day trading NQ everyday per year? Thank you,
Your question is far too generic and demonstrated that is is way to early for you to think about trading real money. First, what kind of trader to you envision yourself to be?...Trends, reversals, trading range bounces, measured moves? I would advise a study of existing price action scholarship (Brooks, Raschke, Volman, Sperandeo would be examples) followed by a lengthy period of simply watching price develop so you get a sense of price behavior and discovery. Put pivots such as prior day high, low and close and current day open and watch what happens at those levels. The institution's move the markets and you can see where the algo's fire off. There are as many ways to trade as there are traders as no two traders are just alike. A trend trader might target 2x initial risk or Fibonacci extension targets or front run prior support and resistance levels or measured moves or have trade management rules such as a trend line break or MA cross or prior bar takeout on a higher time frame. The possibilities are endless but you will not succeed at any until you have a full understanding of the nature of price behavior and that takes time and effort and testing. I won't even touch of the behavior of a trader as that is another vital part of the process. Asking noobie questions on these forums are not the way to learn how to trade unless you have a specific technical question or advise on how to proceed....But understand that you will get some well meaning advice here, some of whom know little or no more than you do and others who are simply full of shit. I wish you well but if you wish to become a trader, you have a lot of work to do.
Re-entry signals (based upon key concepts from your original entry into the trade) and better trail stop management. wrbtrader
As others have pointed out , it really depends on the time frames and type of trading you are doing. If the trader you follow is using volume/market profile he is going to be looking at previously accepted/rejected value levels - HVN/LVN, POC/VWAP and std dev thereof. If your method depends on getting some larger wins then increase your time scale and look for confluences of daily, weekly and larger dynamic std devs. If you are trading in the same direction as institutional traders you should to see profit taking around 2 std dev of larger time frames.
If you gravitate towards volume profile/poc/vwap/std dev trading here is an example of daily 2 std dev (yellow) and weekly 2 std dev (orange) being breached during RTH. Match that up with a monthly HVN (if there is one) or monthly std dev and you will have some solid levels to exit.