How to Trade NQ when TICK is quiet and not at +1000/-1000
I have shown how to fade TICK extremes. Here, I show you how to trade when the TICK is not at extremes.
1) Ascertain where TICK is
2) Define the first 5 minute high and low (NY open high and low)
3) Await for TICK to open and close a whole body above 200, or below -200. This will determine your bias but is not in itself an entry signal! Wait for price action confirmation
4) Price action confirmation - wait for price to close above the NY high if long biased, and close below NY low if short biased. Alternatively, enter when the price has reached a significant Fibonacci level (see previous tutorials for definition based on Value Area). The idea is that price action signals that conflict with TICK signals are either fake or not long lasting
5) When price action confirms, Enter, and set a suitable stop loss (in this example, enter at close of candle below the NY low, setting the stop loss at the 1.618 Fib. If you entered at the 1.618 Fib, consider a stop loss equal to the value of ATR)
6) Take profit at the next significant Fib x.618 or if market is struggling, at next x.236
1) Ascertain where TICK is
2) Define the first 5 minute high and low (NY open high and low)
3) Await for TICK to open and close a whole body above 200, or below -200. This will determine your bias but is not in itself an entry signal! Wait for price action confirmation
4) Price action confirmation - wait for price to close above the NY high if long biased, and close below NY low if short biased. Alternatively, enter when the price has reached a significant Fibonacci level (see previous tutorials for definition based on Value Area). The idea is that price action signals that conflict with TICK signals are either fake or not long lasting
5) When price action confirms, Enter, and set a suitable stop loss (in this example, enter at close of candle below the NY low, setting the stop loss at the 1.618 Fib. If you entered at the 1.618 Fib, consider a stop loss equal to the value of ATR)
6) Take profit at the next significant Fib x.618 or if market is struggling, at next x.236