Using Previous Day POC as Target

[Dogpile]

<<I'm more inclined only to trade in the direction of the migration of the POC which for the past few days >>

I see your logic in what you say about looking long at previous days POC. I have studied George Taylors technique and what you say is kind of consistent with that concept -- find meaningful pivots to use as guidelines. this is similar to what I am saying about the 15-min 20-ema.

btw, Taylors Trading Technique has a lot to do with fading the multi-day migration of price. ie, look for a spot to short if up 2-3 days in a row and vice versa.

Linda Rashke has made practical indicators based on his work. I highly recommend 'Street Smarts' the book for its practical interpretation of Taylor (particularly, the '2-ROC' fade and the 'Pinball Buy' chapters).

<<I can see how you determine your exits but how do you determine how to enter a trade?>>

This is an entire new thread but to answer in general, I like to use short-term parabolics for NQ --- NQ tends to swing a lot in spikey fashion so parabolics work well. doesn't work so well for other contracts that chop around a lot. it also has nice time component to it... gives your trade some room to work for a while and then tightens up. the best trades tend to work right away. once you get some initial movement in your direction, take part off and then use more discretionary stop...

[Dogpile]

<<but how do you determine how to enter a trade? >>

yah, this is the hard part...

here is a single timeframe of a mechanical method to demonstrate an entry technique. the entry technique is crucial but getting direction right is also crucial -- which MP certainly aids.

NQ+week+of+June+1.bmp (image)

notice that we are in a clear uptrend so 'lower lows' are all considered corrective ABC waves and are buyable. there are better ways to enter ABC's than this parabolic method used in the chart... but I drew the lines on there in any case...