Welcome to the Traders Laboratory.

Technical Analysis The technical discussion forum for traders.

Reply
Old 06-22-2007, 09:01 PM   #1

Join Date: May 2007
Posts: 577
Ignore this user

Thanks: 0
Thanked 32 Times in 21 Posts

Trading the Nasdaq-100 (NQ) Futures

ok fellas, its us against the machines (progam trading institutions). let's work together. this thread is for discussing the technical structure of the NQ futures and strategies for profitable trading in this contract.
Dogpile is offline  
Reply With Quote
Old 06-22-2007, 09:58 PM   #2

walterw's Avatar

Join Date: Nov 2006
Location: Argentina
Posts: 2,230
Ignore this user

Thanks: 0
Thanked 242 Times in 154 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

Quote:
Originally Posted by Dogpile »
ok fellas, its us against the machines (progam trading institutions). let's work together. this thread is for discussing the technical structure of the NQ futures and strategies for profitable trading in this contract.
This future has been always a great question for me, I understand it has quite nice volume, but doesnt have that much range...
__________________
you must enjoy trading... otherwise you shouldnt trade...
walterw is offline  
Reply With Quote
Old 06-23-2007, 12:16 AM   #3

Join Date: May 2007
Posts: 577
Ignore this user

Thanks: 0
Thanked 32 Times in 21 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

Nasdaq is a game of stop-gunning and shakeouts. This is good news for short-term traders. My strategy is to patiently wait for the shakeout and then go the other way.

A few guidelines I use:

1. Look for a reversal in the 10am - 11am timeframe if the first move of the day is 'away' from the previous days value area. There is very often a shakeout move that looks violent but is often a good counter-trend trade. It will often look like a trend day but the odds are to fade the shakeout and think about trading back towards 'value' -- think Dalton -- you are getting asymmetric location when you fade a morning 'price spike'... even trend days will often have a monster counter-move shakeout which you can catch for a few points. you are not investing with the closing price in mind -- you are just playing for a flush in your direction.

2. Look for ABC pattern to set up... this is often another shakeout play as a lower low or higher high looks scary but is usually just another counter-trend set-up.

3. You don't need to try to pick tops and bottoms. 7-10 point swings are common -- just try to catch the middle part of the move.

4. Look for NQ to touch its previous days POC -- it is a volatile contract that will touch its previous days POC 75%+ of the time. NQ loves to hunt down the previous days POC -- often even when it seems totally unreasonable. In general, its a good idea to look to trade in the direction consistent with NQ touching its previous days POC (though there are clear exceptions).

5. Don't overtrade this contract. There is all the liquidity you need. You just need to pull a few points out a day to make a living. Make 3-6 points per day with good size and you will rule the world. Some days, the thing is just nasty. Avoid it for a while. For example -- today -- NQ gapped down TOWARDS thursdays POC at 1954.50 (you prefer the first move to start AWAY from the previous POC). When it gaps and then carries into it, the market is basically back in balance and might just chew everyone up for a while. This is what happened. I may still try a trade in it but I will use smaller size.

Comments and other observations. Please join me. You are not 'giving away secrets'... we are all peons in a world of immense institutions. their algorithms couldn't care any less about our scalping strategies.

Last edited by Dogpile; 06-23-2007 at 12:21 AM.
Dogpile is offline  
Reply With Quote
Old 06-23-2007, 12:33 AM   #4

brownsfan019's Avatar

Join Date: Jan 2007
Location: USA
Posts: 4,236
Ignore this user

Thanks: 1,897
Thanked 1,801 Times in 897 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

I like the NQ, it's probably my 2nd or 3rd market of choice. I'm mainly focused on the ES now, so can't comment on the recent movements.
brownsfan019 is offline  
Reply With Quote
Old 06-23-2007, 12:34 AM   #5

Join Date: Mar 2007
Location: Westchester
Posts: 12
Ignore this user

Thanks: 0
Thanked 2 Times in 2 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

Glad to see this thread.

I trade the NQ largely because I've found that it's amenable to predictive analysis. It's price action produce market profiles that fit into vey nice little jigsaw puzzle peices. And so, for example, I felt that it was reasonable to assume that today's price action would be bounded by the red horizontal lines on the accompanying chart. Thereafter, intraday analysis gave direction and quite a few entries and exits targets.

I also like the fact that the NQ seems to be less "nosiy" than some of the other e-minis. Take the ER. It has about the same daily volume as the NQ but far more ticks (trades) per day. This suggests that there are more small lot ER trades which tend to produce more whipsaw action at pivot highs and lows. Trading is tough enough as it is and I prefer not to have to deal with this noise.
Attached Thumbnails
Trading the Nasdaq-100 (NQ) Futures-1-nqmp.png  

Last edited by glenbee; 06-23-2007 at 12:41 AM.
glenbee is offline  
Reply With Quote
Old 06-23-2007, 12:39 AM   #6

Join Date: May 2007
Posts: 577
Ignore this user

Thanks: 0
Thanked 32 Times in 21 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

<<It's price action produced market profiles that fit into vey nice little jibsaw puzzle peices. >>

well said. when you get a chance, would enjoy seeing something you saw in todays technical structure.
Dogpile is offline  
Reply With Quote
Old 06-23-2007, 12:42 AM   #7

Join Date: Mar 2007
Location: Westchester
Posts: 12
Ignore this user

Thanks: 0
Thanked 2 Times in 2 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

For some reason the chart didn't come through in my first reply. It's edited and the chart I referred to should be there now.
glenbee is offline  
Reply With Quote
Old 06-23-2007, 12:44 AM   #8

Join Date: May 2007
Posts: 577
Ignore this user

Thanks: 0
Thanked 32 Times in 21 Posts

Re: Trading the Nasdaq-100 (NQ) Futures

here is a look at thursday... a beautiful day for NQ traders:

(I generally skip opening 30-minutes -- just watch)

1. play for a 10-11am reversal if 1st push is away from previous day value... (note there was also a little abc down).

2. ABC up forms into previous day 'last hour high'... this high forms while STILL in the 10-11am reversal timeframe. fade it for a flush down.

3. note how NQ hunts down and touches previous day POC wayyyy up at 67.50. there was a long play here off a mid-day coil breakout. a little tricky since no good ABC down to fade but there is a good tendency to go touch previous day POC.

4. after touching the POC, the market is extended and reached that congestion zone (the POC) for some resistance. again, fade this giant ABC up for a flush down...

http://bp1.blogger.com/_5h-SWVGx6Ms/...ne+21+2007.bmp

Last edited by Dogpile; 06-23-2007 at 12:51 AM.
Dogpile is offline  
Reply With Quote

Reply

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
Futures Trading Brokers and Trading Software brownsfan019 Brokers and Data Feeds 21 07-02-2011 10:02 PM
Futures Trading and Software Freddie E-mini Futures Trading Laboratory 19 02-27-2007 07:49 PM
ADSX (Nasdaq) SPADAGG Stock Trading Laboratory 4 02-23-2007 06:29 AM
NYSE or NASDAQ? Labcast Stock Trading Laboratory 4 10-21-2006 11:56 PM

All times are GMT -4. The time now is 03:13 AM.
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
2006-2011 Traders Laboratory, All Rights Reserved.