Support and Resistance Key. White Lines: Support and Resistance Levels to watch and fade if conditions allow, Red Line: 20 SMA and previous low, Green Line: Previous High
NQ Support/Resistance Target areas to fade or run withSupport and Resistance Key. White Lines: Support and Resistance Levels to watch and fade if conditions allow, Red Line: 20 SMA and previous low, Green Line: Previous High
Pre Market Thoughts - 15 Minute Daily Range TradeThe night before I form a hypothesis of how I will approach the day if the market gaps up or down. I base this hypothesis off the 15 and 60 minute trend, Support and Resistance areas, and the prior days trend. Preparing the night before removes the emotion of randomly placing a trade.
Attempt only trades in which the ES and NQ line up for optimal success.To be successful in trading master ONE setup before tackling another. Study it, own it and turn off the computer after the trade and let it play out.
EXAMPLE of mastering one Setup
15 Minute Range: One trade a day on the first break of the 15 minute range. Fade or take the BO depending on your homework and today's gap. ES: 2 point stop and 4 point target, NQ 5 point stop and 10 point target, SPY .20 stop and .40 target. With study, discipline and devotion to one setup you can build your success rate to 55-65% over time.
How to succeed:
- One day at a time devoting yourself to the same setup day after day.Think, sleep and eat your setup.
- Skill is developed by hours and hours of working on your craft. Small advantages hammered out day by day.
- Everyday write 3 things you learned from your setup.
- An oak tree will not fall by hitting it at 20 different locations but by hitting it at the same spot day after day.
- Don't be afraid to make a decision. Don't be afraid to fail and have a losing trade. You will not be perfect.Trade within your means.
- Previous Day Price and trend: Closed above, below or between the five minute 20 and 240 SMA (240sma is the 60 minute 20sma)
- Was the previous day a Breakout day, continuation day or flat
- 15 and 60 minute trend
- Volume Today: is the early volume strong pushing through a support and resistance zone. Is volume average and price bumping up to a support or resistance zone.
- Early Trading pattern: Is the trend strong or weak. Is the first 5 minute candle red or green. What is the volume on that candle.
- Ticks Today: Strong, weak, supporting a BO/BD or diverging supporting a fade.
- Support / Resistance areas on the 15 or 60 minute chart.
- Longer Term remains in a bullish up trend. Every weekend I post thoughts on the Weekly Charts
* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money. Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.