Day Trading The NQ  Tick Charts Versus Range Charts

Day Trading The NQ Tick Charts Versus Range Charts


hello traders it’s Samurai trader here
welcome to this training session in today’s session we’re going to be
looking at day trading the NQ futures contract tick charts vs. range charts
we now have hundreds of members around the world that trade the NQ using tick
charts and quite often I’ll receive emails just about how Wiki the tick
chart can be particularly in times of extreme volatility as we’ve witnessed in
the last week so in today’s session we’re going to be looking at range
charts and how we can smooth price action and actually make entries easier
to recognize of course as with all of my recordings we need to understand the
risk when it comes to trading if you’re not familiar with my videos or if you
haven’t read this risk disclaimer for a period of time please do we also are
about to go after I go through a couple more slides go to some charts and I’ll
give you some chart examples so bottom right-hand corner you can click on that
and go to full screen it may make it a little easier to view the charts so as
we get into this let’s consider this for a moment those that may be watching this
recording they’re not familiar with the Nasdaq the E-Mini CME symbol of course is
NQ trades in 0.25 percent increments or $5 a tick it’s $20 a point
now it’s a great market to trade you’ve got very very good volume and I
like to trade the 133 tick chart for day trading the NQ during the New York hours
during the after our session the Globex session you really need to drop that
timeframe right down because you just don’t have anywhere near the volume and
in fact usually during the Globex session the ym exceeds the NQ as far as
volume goes which is another excellent market to trade so considering the NQ
how can we smooth price action because it can be very whippy very rangy at
times you can have the candles or price bars really very very different
sizes etc well one of the solutions may be for you to consider range chance I
really like range charts because they can really smooth price action now with
range chart says with chick charts and any time frame if you like using time
frames you need to consider stops and the speed of a market of course the low
of a time period for an example one range will each candle form a lot
quicker than say a two range so also at times one range it’s just not tradable
in my opinion and is the market each candle is forming so quickly it makes it
very very difficult winds of a mark and also identify trade setups so I really
like the 1.5 range over six it’s a 1.5 range is a reminder is six ticks okay so
each candle is worth thirty dollars and we’ll have a look at this because we
need to consider the size of candles also compared to your stops and a reason
being as all of my traders are aware I like to put my stop two ticks above or
below for closest swing high or swing low and we’ll look at that in a moment
so typically if we were to look at say a 1.5 range two candles might be I might
require two candles to give me my entry then my stop will be two ticks below
there that’s $70 and maybe even one tick higher for my entry to be stopped into a
trade so it might be a $75 stop so that’s why you need to really consider
the size of those candles if you are using a flexible stop like that you may
have a decide to have a thick stop by the way where it really doesn’t matter
that is you might say have a minimum stop on the or a maximum stop I should
say if say eight ticks or 10 ticks and and by the way I would usually recommend
a minimum stop if you’re day trading on the NQ of at least 10 ticks I just tend
to find that works really well now if we consider tick charts they’re very very popular of course we have thousands of day traders
around the world here in this particular case I’ve got on the chart there 144
tick chart as an example I like as I mentioned earlier on the NQ for 133 so
one candle or a bar will print after every 144 transactions that is trade to
take place irrespective of how many contracts may be traded within that 144
transactions now another type of candle I really like particularly on the ES
most of my traders are aware I really like volume charts so each new bar or
candle will plot will form after 1000 contracts have been traded now if we
consider range bars or candles which is what we’re talking about today that is a
new candle will plot once price action has exceeded a user’s predefined price
or tick range an example might be an 8 tick range in this particular case on the NQ
which we’re about to have a look at now volume charts rely only on volume range
bar charts rely only on price action and that is why if you’re a price action
trader you may really like trading with range chance now all of this of course
and a whole lot more is all covered in the day traders fast-track program so
the setups I’m about to talk to you about particularly for my members are
all included in the day traders fast-track program so please go to my
website after recording and request more information on my course and also my
free ebook and of course please make sure you subscribe to my channel so
let’s go and have a look at the charts themselves you know what I have here
trade is in front of you is on the left a 133 tick chart on the NQ and on the
right we have a two range chart so what we’ve got here and we can just
see this like black line here and let me just go back one can all you can see
this white paint bar just they have a candle right next door is this action
right here so she’s then start to take notice of a
fall in the market this area here just look how congested that is and then on
the right just notice as I scroll across over here notice how smooth that is
there compared to this which is very very whippy so as with always traders I
recommend that that you always go back and do your own testing when you’re
looking at any trading model any recommendation go and have a look at
this yourself but as we go along I think you’ll find these real merits in trading
a smoother chart with the NQ something else you’ll also notice perhaps it’s not
a great example here but you’re quite off to notice here that you’re if you’ve
got a very short term MACD for example the action on that usually is a lot
smoother when you’re using a range bar chart because price action has been
smoothed out there as well so let me just expand this chart here now what we
can see here is it it almost looks very very messy doesn’t it and the time
factor here over on the left here this is 11:24 in the morning and over here
this is U.S time this is a 123 so we can just see that time range here but
it’s also very very whippy now for my members we can see up here we had of
course our classic t20 we’ve got a t3 there we’ve got a nice t3 up here we’ve
got a t3 bottom down for a nice t7 a double bottom and this is a classic
example by the way traders where I always like to have my entry or sorry
might stop two ticks below the closest swing low or high so my stop will be two
ticks below there you’re actually kept in that trade that ticked down one tick
lower than here so you’ll kept safe from the trade if you along there and my stop
would be two ticks above there if I’d have shored it here likewise if I
gone long here my stop would have been two ticks there for our t20 up here my
stop would have been two ticks above there so we can just see how price
action is really it’s very messy and this can be very frustrating for traders
and if you look at the large candles it can mean if you are going to place your
stop above or below these pivot points these swing highs or swing lows you can
have quite a variance in the stop if you do want to do that unless you’re using a
fixed stop concept now if we now go over and have a look at a comparison to a
range chart and what I will do traders just make sure that we’re looking at
exactly the same area so let me now go and have a look at this here expand this
out so we can just see here where the NQ was very very whipping as much as
we go into a period of consolidation here but you can just see it’s very very
smooth price action here you’ve got a t20 you’ve got a t20 this is of course
as with all trading when we see our moving averages going sideways here
horizontally though they’re slightly rising as you can see there you can see
we still an uptrend and of course our longer-term our 200 is telling us that
really we should be considering long trades only so you’ve got an entry here
you’ve got another entry there you’ve got one here you’ve got one here you’ve
got one there but just notice in comparison to the NQ here it’s just a
very very different looking chart the uptime wise here so we’re looking at one
what are we here 101 here to those here okay and just look at that there but
that price action there whoops and this is this is a difference when you’ve got
different types of charts of course that can very yeah the time period that
you’re trading or how much you get on the chart the amount of candles so if we
go to the same area here let me just get this right for you here okay so there is
right there now so we can see this little double bottom which is very very
tidy it’s what we call it t7 it’s very messy in comparison when you look at
that area here compared to this area now let’s go and drop the time frame and
let’s go and have a look at a 1 range now one range as a reminder is four ticks or
one point so just put one in there we’re looking two weeks back let me just get
that up here now one of the things you may you or you can also do is to do what
I’ve got here is have your tick and a range chart on the same window or like
myself if I have multiple screens you can have them on different screens but
let’s just go to this exact same price action over here so this is each one of
these is worth $20 of course and so if we look at this right here so we can see
that point there is this point here okay so the one range and let me just go here
we actually have our traders will know we’ve actually got an 89B right here
and you can see here you’re going to be in a lot earlier now if you’re after a
10 tick target I liked by the way to go for 12 to 14 ticks on the NQ there you’ve got 4 10 you’ve got about 11 ticks there you still just
wanted to stay and that would have given you about 12 ticks from there to there
in this move now if you’re a true scalper you can see here with these are
trades here you’ve got a nice scalp there a nice scalp there a nice nice
scalp there let’s just expand this out you’ve got a t20 this is that dangers I
think as always traders you want to be more cautious of of course the NQ though
usually when you get some trends you get some really nice trends so you’ve got
t20 you got a 34b of course you’ve got there t20 again 34B
so this in great trades here the problem is is the time in trading ES
if we look at this here right now this isn’t all this is what do we got 146
to 236 this is about an hour’s price action in that timeframe so let’s just
go and have a look at one more here if we go back let’s have a look at the 1.5
which is a whoops 1.5 range which means that each candle is worth $30 so as far
as in your stops go if we look then here and this is let’s just have a look here
and this is really interesting traders if you look at this price action right
here now you can see the 133 look at the size of these candles and what I am
going to I’m gonna change the time frame because this is at the end of a trading
day so I don’t like to trade the last hour you can be all over the place so
let’s just go back to another time period which is just gonna make it more
realistic in trading let’s just go back here and let’s look at this here okay so
over here of course we’ve got our thirty dollar candles if we can call them
thirty dollars for a moment and you can just see how much smoother you are on a
range chart and also notice here that your if you’re particularly trading with
a short term MACD it’s how much smoother it is in comparison it’s
because of the candle formations of course so with the strategies of the day
traders fast track program of course having candles like this this is an nice
t3 here’s your entry right there can I so let me just mark this up here
and have a look at on the range charts okay you can to see how much messier
from there okay there to here compare us in comparison to a tick chart so traders
go back in and do some testing and by the way then you’ll stop if you’re
entering this one because your entry isn’t clearly signaled here on this t3
to we close up above here right there you stop there’s probably going to
be around the sixty five seventy dollar mark if you take
my recommendation of two ticks explore swing high swing low there of course you
have another nice little lot t1 entry so traders hopefully this has been
official so well I really believe it range chance have some real merits in
trading the NQ once again please subscribe to my channel drop me an email
if you’ve got any questions to find out more about the day traders fast track
program please go to my website even better still invest one hundred ninety
seven dollars and purchase the most comprehensive day traders program that I
know of thank you traders

One Comments

  • I Am A Day Trader

    October 20, 2018

    "Get the Competitive Edge Now!
    https://www.iamadaytrader.com/2018-check-out-the-day-traders-fast-track-program"

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