NQ Blue Bar High and Low!

8/18/2010

The NQ had a 30 point range today and our Kill Zone indicator did a good job of telling us when the low and high had odds of being put in for the day. When the indicator is peaking the bars will turn blue and this is a sign that the move prior to the blue bars is most likely over. If you are in a trade and the blue bars appear this is where we would move our stop very tight to the prior blue bar low (1 bar stop) and let the market take us out of the trade.We also had yellow bars telling us a big move was about to occur.

Even though the NQ has a less per point value it is a great instrument to trade especially if you are trying to build your trading habits. Less money per point is good thing not a bad thing even though most people look at the negatives with the NQ's. There is plenty of volume to get filled and the range of the day is usually double the ES.

In trading our job is to make points. The money made from the points is just the end result meaning; the instrument you trade is a vehicle to make the points and that is it when day trading. Do you really care if the ES is at 2000 or 1000? No, all we care about is movement and if the NQ has a much bigger range it is easier to make the points. Commissions are cheap so it doesn't really matter if the NQ was $20 a point or $30 does it? No, we just care if it is moving.

If you are frustrated trying to trade the ES you are not alone. It is acknowledging it and moving on to something that might fit you better as a trader. If you are a scalper the ES is even that much harder to squeeze out a few points. It is the time sitting in the trade that could be killing your confidence!

Happy Trading,

www.eMiniSchool.com