NQ Price Action Trading

December 16th, 2014, 07:30 PM

Hi guys -

I wanted to ante up and start a trading journal. My goal is to document my progress and keep myself disciplined and focused. I will also document some minor non-trading goals that I believe will ultimately lead to trading success such as working out & mediation etc.

Some background:

My first experience with trading came back in college when I purchased a call option on Google back when their earnings were on fire. I made an easy 5K not knowing anything and that got me interested in trading. I bought a bunch of books and took a seminar but then all that stopped after I was deployed in the Army. I ended up doing a combat a tour in Iraq for a year so trading took a back seat for a long time with all my traveling before and after the deployment.

After I came back I finished up college but not before taking a year off to play poker full time. I was moderately successful but I do not regret that decision as I believe it taught me to think differently about the world. Right now I am looking to make trading full time endeavor. I have no illusions and know this will not be easy and will take time and applied effort. I won't think about going live till next year and know that it might well take years to get to a place of consistency before I make the jump to full time.

Why?

With all that said I think it is important to answer why trading. I have a decent position currently that affords me a nice salary with benefits (including some freedom to trade in the morning for a few hours which I plan to take advantage of). I have thought about this a lot and below is the list of reasons that I can best articulate. All I know is that I keep coming back to trading so I have to follow where it leads. So in no particular order:

1) My own boss. Not having to answer to anyone and being accountable only to myself. I have seen firsthand how one can be laid off in corporate after a few mishaps -from being one of the office favorites to being laid off. I don't want my fate in anyone else's hand.

2) Trading is as an endeavor where I can constantly improve - I am very goal orientated and I need something that will always keep me on my feet and constantly improving

3) Money - I have to list this one out. Earning potential is high as your progress.

4) X factor - I am simply drawn towards trading for some reason I can't quite articulate. Everything I read about the characteristics being successful is something that appeals to me. I want to be that person.

5) Dog - This might seem like an "odd" one but it speaks to lifestyle. Every day I go to work my dog gives me this look that says, "don't go". Working at home next to my dog would bring me some happiness.

6) I am ready now at this point to get serious - wish I started earlier. I spent a few months getting myself together. I got a bit frustrated with the constant moving around in methods and also; the things that I did try did not jibe well with me as much as I tired. I have finally settled on learning price action a la AL brooks, Mack and others borrowing from the ACD Method and Mark fisher.

8) I really enjoy following the Market � I like all aspects of it and it doesn�t feel like �work to me�.

7) Life is short is you might as well do whatever thing drives you. I know that sounds corny but the more I meditate and think back on my combat deployment the more I realize that life is short so why not do what brings you enjoyment and are driven to accomplish?

Method:

As I said before for the past few months I've been larking around on here and at futures.io (formerly BMT) and been on an indicator bender; switching from one method to another. I have come to realize that going from one method to the next is not the answer and whatever methodology I choose needs to be personal to me & make sense to me. And right now it is Price Action. With all the indicators and crap that I have downloaded and toiled with I want it to be simple and back to the basics. I do not preclude the possibility of adding anything in the future but I want to keep it simple and smart.

More to follow but I wanted to get started. Thanks for reading.

-Rob

December 16th, 2014, 09:09 PM

As the thread title suggest I am focusing on the NQ. I have looked at the ES, CL, TF among others but have settled on the NQ as my main market for now. I like the tick value, the volatility of the instrument and I also like to follow the ten main components so that's another plus ( one should have some idea of the product they are trading). Like I said in the first thread I am newbie so in the beginning I will be rambling a lot on my way to successful live trading.

Below are some items that I learned and observed today;

The NQ reversed down after initially moving higher and closed at a new low of the day. Three bear bars on the daily chart below the September (4,119) and October high (4,163). According to Al Brooks when the day ends with a sell climax, there is a 33% change of a continuation of the trend down and a 67% change of a reversal on the following day. I think tomorrow will be interesting with the FOMC and other news events coming out. With all this increased activity, I think the FMOC will cause a big move up or down or both. Also note, the five and 60 minute charts are in a clear bear channel. Perhaps a bottom as been placed. But maybe not.

1. Lots of activity today. I usually watch the 300 tick chart on the NQ but today and yesterday the 900 tick or greater seemed to fit better else too many bars printed.

2. Watch Crude oil - Seems like the whole world is watching crude. Crude stooped its parabolic free fall and closed higher today yet the equity markets closed down

3. I suspect crude will be a proxy for global demand and economic growth expectations from here on out. Seems like the main story line out there is on the supply side but I think people are forgetting the demand side (slowing Chinese growth, slowing international, etc). keep an eye on Crude and cooper.

4. bull flag is a strong rise up (the Poole) and then sideways action (range) which makes up the flag

5. A wedge bull flag - same thing regarding the Poole but the action has lower highs and higher lows....so its a wedge >...in other words it is a triangle (wedge) = compression. A lot of times it is bull signal so that higher action is expected.

NQ Price Action Trading

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NQ Price Action Trading