Hello, APEX. My name is Joe. I’m new to the forum and new to trading. I was on market replay watching the NQ chart from yesterday. I have a question about this screenshot below. As I understand it, the market is trending down strongly and we get oscillation at 0.5 Deviation level, but within the oscillation, I see a higher high, less VAD, time chop, we’re near a level and a cluster has formed. The market was trending strongly but within the oscillation, it seems to be somewhat wavey. Would the oscillation allow for a #1 setup although the market had been strongly trending? Please let me know your thoughts.
#1 PP setup within a super trending market? Please help!
mtroga
#2
For that kind of thing it’s never really a black and white answer. “Is this enough chop to now call it a ‘choppy market’ or a ‘ranging market’ instead of a trend?” It’s kind of a judgement call. That does look to be technically a PP1. But it’s not the prettiest, for the reason you bring up. Also if going short, it would be preferable to have the level of importance be above the reverse. However, there are a couple of other things that might have gotten you in…
- As you point out the trend basically got suspended at that red ICE & 0.5 dev level. It became choppy, almost to the point of textbook “tight chop” (no more than three bars in one direction before it switches direction). You might have drawn a chop box around that area and got in as it broke out of the bottom as a PP4. The fact that it was a technical PP1 at the top of the chop box might make a PP4 entry more reassuring.
- That reversal bar is also a Power P setup reversing off a red powerline/swing level. What’s not perfect about it is a swing level alone is generally not considered a “level of importance” for Power P trades. And recently, Lori has mentioned how she personally wants to have a brick wall involved in any setup she takes. (But it is possible there is a brick wall there from earlier price action.) Also, it’s tough to tell from your ss, but EV looks pretty low at that point. We not only want current volume to be meeting or exceeding expected volume, but we’d like to see volume pretty high in general. This is why most in the Elite Room set their cluster threshold to at least 750 or 1000, if not higher.
That being said, the fact that it’s technically a PP1 and Power P might have gotten you in. But as Lori says, she only wants the best of the best…which means that one would probably have been left alone.