My nq price action method

Trade plan (created for each trade)

1.) Signal / entry
2.) Initial Stop loss
3.) Target / way of managing trade

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1st trade

1.) short on a retracement to the supply line / entry 3562.25
2.) stop 3565.50
3.) Exit when supply line is broken.


Solid trade

Question regarding 3.) above though – breach of the overall supply line…

Or the near term supply line - made by the red bar w/ the wick (almost center of your first red circle)… and the next long red bar)

Or a breach of the intermediate supply line - made after the 3 green bars (8:36 ish)

I don’t know the PA that precedes the first red circle – but if you look there are a couple of things going on

A DB – before price swings back up the to the over all supply line (8:41 ish)

And.., once price swings back up and puts in the DT – there is essentially a range – encompassing the 2 DTs and the 2 DBs (8:30 - ~8:46 ish)

Just something to be aware of as the session is unfolding


Later.., at the bottom of the move down from the DT…, notice how price consolidated a bit (5 bars) at the bottom of the range I mentioned (8;51 - 8:55 ish) …, retraced to ~ the halfway point (50%) of the range.., then resumed down


Additional sign of weakness





2nd trade

1.) short off of the steeper drawn supply line / short 3548
2.) stop of 3551
3.) exit when supply is broken.

Price pulled back…, but never made it to the bottom of the range I mentioned above – close to the bottom.., but not to it (further sign of weakness)

This move / area could also constitute as a DT entry (1 top just prior to 8:49... the 2nd just after 8:49)

Good trade


3rd trade

1.) long on the retracement from the demand line and also a higher low / long 3526.75
2.) stop at 3523
3.) or when demand line is broken.


This one I question a bit

The demand line;

Appears like you drew it off the body.., and not the wick/ tail

Yet other lines – you’ve drawn off the wicks / tail

I would respectfully suggest you pick one method and stick to it (wicks or bodies) – I use the wick / tail

Another aspect I question – you went long into a range (9:45 to ~9:50) – had you considered that??

Last aspect – I think the risk was a bit much for the conditions

Bars 10:11 / 10:12 / 10:13 make HLs and a demand line (up move TL) – why not make a breach of that the stop and reduce your risk by almost 1/2


4th trade

1.) long from a higher low / long at 3535.75
2,) stop at 3530
3.) exited at the double top which was the 5th trade / or when demand line is broken.

I question this trade also

Higher low – from the low @ 10:08??

If so.., what queued you in this was a HL

I see price testing the top of the range formed @ (9:45 to ~9:50)

I also see another range just above your entry @ 10:31 to 10:38

My opinion (only) with all the weakness throughout – this trade is very risky – if I had gone long – the target would be top (test) of the 10:31 t- 10:38 range


The stop for my long would have been 3551 (absolutely no room – it either works…, or fails and I’m out)


last trade

1.) short (DT I assume) / short at 3539.50
2.) stop at 3542
3.) exited on the trend line break around 1:30 / exit when supply line is broken

Solid trade


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General comments

I like your clean charts (minimal lines) – makes it easy to focus on PA / trade signals

RN

 

Trading (vs learning) Always use the top down approach (learning use bottom up)

Overall TF; create/ identify – the trend & channel

Intermediate TF; also create / identify – the trend & channel…, AND also the S/R areas

Where is price in each of those

(recall the horizontal / vertical map)

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Iow.., potentially price could fall a f’n long way....

3 possible scenarios

Buying steps in.., and drives price up

Selling steps in…, and continues driving it down

Possibly an attempt to make a new intraday zone as a reference

(could be S.., or R.., just depending if price on top or the bottom of this zone)

Be ready for any combination of these

But no matter - keep your head down..., create your context... create a plan for each trade - trade each plan - move on

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Aside;

This is not a prediction – just an observation…

mkt has been ignoring pretty much all decent to good earnings this past week

And Monday’s have a habit of being down days

We never know.., but time will tell

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If you want – create a channel of the overall…, and a channel / S&R areas of the intermediate – then post it...,

We’ll have a look and see what we see

RN

 

4 hour

 

The granularity on this chart stinks.., but it's free

It has a 5 hr TF setting.., not 4

To get the horizontal levels "close" - I switched to the 15 - as it's what I'm used to

Then switched back to the 5 hr to mirror your chart as close as possible


RN

 

1 hour support and resistance horizontal

 

2500 tick

 

2500 with mid point

 

What I'm about to say - may want bounce off Ammo (always more than one way to skin that cat)


I identify S/R areas as zones (have an upper and lower limit) - drawn as horizontal channels

Only time I'll use a single line is when price hits a level - and is immediately rejected (either up or down)

Think a long tail/ wick..., or possibly even a solid bar

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But typically I denote S&R as zones.., and draw them as horizontal channels

RN

 

That is a clean channel....

Only question - does it go far enough back (capture enough of the intermediate PA)

RN

 

My thought - S&R zones are too big to be usable

RN