My nq price action method

Thanks RN I'm getting better and I think I know when to pull the trigger need to work on strict rules for exiting and study more market profile so I can get better at support and resistance. not a bad day I managed 18.5 points on the nq without trading the big early swing due to some errands I had to run. I will post my chart in a while with my trades plus the ones that should have been taken.

 

There is a member; Ammo - hangs out in the ES journal - he uses MP - and is good at it - maybe study some of his posts

Just don't hindsight it - learn whatever there is to learn - then and move on

No need beating yourself up over the past

Good Job Sir

RN

 

Thanks RN I've been in contact with ammo and he is very willing to help. The trades I mark will be the ones I took and should have when I was away

 

todays trades using the 500 tick

 

Before commenting on your chart…, allow me to go off on a little tangent

Topic;

When to combine signals / when to keep them separate

This is theater of the mind..., so work with me here


The scenario;

A down move.., containing 3 signals;

1 - DT
2 - LH’s - which form a down move TL
3- PB - in the form of a range - to the down move TL – which ultimately breaks out to the down side

(initially just think – price is moving down from a newly formed DT)


We’re watching the chart

And see a DT form (could be adjacent bars… could be the two DT bars are separated by some number of bars –no matter it’s a potential DT forming)

We short it – the stop is a breach of this DT (strait forward)

Now instead…, we miss the above entry and price goes on to create a LL

Do we trade this as it were a DT – no…,

Unless price retests and fails at / near the DT – which would equate to equal H’s (for a triple top)… or a LH (price only got near the DT)


So from the above LL – we’re likely no longer looking for a DT trade…, but instead looking for a LH entry signal

(and 2 or more LHs can be connected to create a down move TL

Price creates 2 LHs – which we can short – and our stop is – a breach of this down move (LHs) TL…

But no longer would it be a breach of the DT – that trade signal has gone and went.., if we didn’t take it initially

However.., if we had entered short @ the DT – we certainly could use a breach of this down move (LHs) TL as the stop


Onward

Price creates.., say 4 move LHs (at a steeper decent than the initial 2 LHs) – then proceeds to PB…, in the form of a range…, to the initial down move (LHs) TL

While price is in this range;

Could we use the DT signal or stop – no, we’re way past that – if we didn’t take the DT short initially

Could we use the down move (LHs) TL – possibly – recall I said price was in a range – pulling back to this down TL

Could we use a B/O…, to the down side…, out of the range…, as an entry signal – certainly

Our stop – a breach of the LH (down move) TL / breach of the top of the range (it’s the same)

Now.., if we had entered the DT short… or the initial down move (LHs) TL – we could also use the same (as described in the last sentence) – breach of the down move (LHs) TL / breach of the top of the range –as the exit


My point

We need to constantly distinguish and separate when one signal evolves into the next

We can use a failure of the current signal as an exit for the previous entry

But never use a failure of the previous signal…, as an exit.., for the current signal

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Another way you can “bounce these signals off one another” and read price

DT = weakness / down bias (price’s bias)
LH = weakness / down bias
Range B/O (which btw.., if nothing has changed – then which way should price break out) to the down side = weakness

Price doing this in a relatively tight channel = lack of volatility / consensus / predominant control

All that equates to what = down/ weakness/ short it

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Whether knowingly or not.., today on your frist trade – you used 1 signal to enter (DB)…, then the next signal (breach of the up move (HL) TL) to exit – which is perfectly acceptable

But did you realize that

Also – now can you see why I want you to break down that one attachment – the more signals you see in succession – lends credence to what price is doing… and very likely will continuing doing


Realize though – this is but one of the reasons (there are several).., you need to really understand that attachment I posted

Hope this makes sense - if not - let's break it down - this is a fundamental to really reading PA imo

RN

 

Focusing only on the down move TLs / entries

I’d say 1.., 2.., 4.., 5.., and 6

We’re drawn entirely after the fact

Missed the initial move (thrust) down price made – then it appears keyed off the secondary down move to draw the down TLs


And if that true – then I must question the validity of shorts – A…, C.., and D






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Down TL 3 / Short B – I get that one.., no question

I’ll next focus on the longs

RN

 

Focusing only on the up move TLs

1 – Not connecting the lows (reference my poorly drawn red TL) – entry is fine
2 – Beautiful line / entry
3 – Beautiful line / entry


eta - There is not an overall down TL drawn - which is okay - but realize the bias (hence short signals) stand the best chance

Not to say going long is not valid... just any long - be prepared to exit quicker / expect less of a favorable move

RN

 

The reason I didn't mark the initial short was because I wasn't around and I didn't mark any pre market trades. So the 1st short was off a retracement in an obvious down move

 

short c was at resistance and short d was a lower high at the down trend line so I thought it was ok

 

Not nitpicking - just observations

Nothing is obvious - ever (like expecting - nope)


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On another note - make sure to rest Sir - tomorrow we do it all over again



RN