Identify the direction (recall / use the definition of an edge) Identify / wait on an entry (which includes a low risk stop loss) Enter Wait till it time to exit Exit â for a profit.., or a loss WRR No matter.., this never changes =============== This would be the core of our trading RN
I'm looking at my pre market prep work and as of right now I am looking to see where the nq is trading. What the big picture is and where we are at in the current trend. Also area's in the premarket that might have been support or resistance. Am I missing anything else?
Couple of ways to trade what we think is a DT / DB One â would be to enter a Buy / Sell stop mkt order - placed above / below the potential DT/DB It an order.., that when hit - gets you into a trade - as opposed to a stop loss that gets you out ====================== Other â read price Trading TF; What I donât want to see â price breaching the DT/DB level What I do want to see â reluctance / resistance / weakness - coming in â near / at that level On the Lower TF (micro view into the structure of bar(s) on my trading TF I want to see; Possibly a failed re-test (could be two adjacent bars) Lower â or at least equal â H or L (depending if it a DT or DB) on adjacent bars Possibly a thrust away from the potential DT / DB area⦠a return for a retest â which fails Time; Is it near the opening of a new bar on my trading TF (start noticing what occurs when a new bar opens) Another scenario; Price hits the area.., is rejected - then skirts off - at these times - a breach of the LHs formed on the lower TF (in a DT & price moving down)..., or..., a breach of the HLs formed on the lower TF (in a DB & price moving up) would be the stop ===================== Iow.., weâre looking for clues and cues price does not want to breach that level Make sense? Go back and review the DTs / DBâs on a lower TF â see if you can pick up on the clues If not post both charts (your trading TF and a lower TF) and letâs see if together we can pick out the signs Sherlock Holmes..., I presume RN
Youâre trading futures â I trade stock⦠your premkt..., I presume..., is much more active than mine That said â allow me to talk out of both sides of my mouth (may as well get used to it we are after all bi-directional) Learning to trade; I think it beneficial to start at the bottom (a small TF) â¦, learn how price works there⦠then move out to bigger and bigger views (TFs) â specifically learning how small(er) TF bars make up large(r).., and ever large(r) TF bars (remember though.., it is all the same information - simply busted into what ever time one chooses) ======================== Actual trading â is the exact opposite (again imo) First and foremost â always remember.., price does not act on only one plane â it works on both the horizontal and diagonal That said; Always start big picture and work your way down Look at price from the last turn (1Q 2009 or thereabouts) â create a channel â Where is price in that channel? Move to a shorter view (TF) â identify the S/R areas (identified via the way I described in PM) â Where is price in that? What about the trend from the last swing on this TF (not to be confused by the aforementioned turn.., on the overall) - create a channel encompassing that - Where is price in that? Now you have a horizontal and diagonal map Important notes: Donât go crazy making lines â a few is good â to many is plain confusing (ultimately youâll need to decide) Make sure every line you copy from one TF..., to another TF - is copied exactly⦠and I mean exactly From one TF to another the scaling is skewed (nature of the beast â more or fewer bars in the same basic physical space) Nothing is more confusing⦠or more frustrating â than conflicting lines on different charts (one tells you thisâ¦, the other tells you that⦠and meanwhile price is saying something totally different â pure frustration because we donât know what the hell) Observing the premkt I canât really say.., because I donât know⦠in general terms look for rejections / thrusts / ranges â and make note of them Ultimately â youâll need screen time.., observing to see how (or if) these come into play during RTH If you donât have a journal â please get one.., or two One for capturing trading specific notesâ¦, one for capturing you specific notes You can use one..., but please use it RN
Example I posted a while back in another thread attached ================ Notes; Support = Demand = Buying = Strength vs. Resistance = Supply = Selling = Weakness different words used to describe the same exact thing (PA / Context / Conditions / Price Bias) BTW; Price bias is exactly that - Price's bias... not our bias We keep our self separated..., neutral (centered)..., and objective - whenever we're unable to do so.., we stop trading until we can ================== Happy Easter to You and Your Family as well RN
Ran out of time editing the above post To add to the terms strength / weakness ======================= But (and again talking out of both sides of my mouth) The term Weakness - is also be used to describe a condition - where price is moving up - but slowing (in the form of more selling / shorting..., less buying) as well The term Strength - can be used to describe a condition - where price is moving down - but again slowing (in the form of more buying..., less selling / shorting) Either could be the prelude to a pull back / retrace / reversal / consolidation (range) - or not Trading PA means we're constantly evaluating & looking for clues Note on context; Clear.., concise context is absolutely vital..., not only when deciphering PA's clues/ signals/ reading PA..., but also when determining the meaning of the term(s) we use RN
Another test Slugar (trading is full of em â may as well get use to it) Attached.., are two sets of channels One set represent an up moveâ¦, the other set represent a down move The two up move channels are at the same angleâ¦. As are the two down move channels ======================= Comparing the down move channels against each other Or Comparing the up move channels against each other Other than color â what is differentâ¦, what does that difference meanâ¦, what does that difference represent This all in the context (and effort) of reading PA RN