Day Trading Journal – 108 ticks on /NQ NASDAQ Emini Futures

/NQ NASDAQ Emini Futures trading journal

This is a day trading journal for a Long on NASDAQ Emini Futures on the 23rd of August 2018 using our “Day Trading Add-On Suite for ThinkorSwim”.  This strategy utilizes the multiple time-frame W5T dot cloud with a bullish bias for technology futures given strong momentum of several large cap stocks such as Apple.  Apple has publicly stated that it will continue buying back its stock and given we are past the earnings date they are able to continue buybacks. Out multiple time-frame DOT Cloud continues to show a bullish bias on our anchor “daily” time-frame as shown by the bottom row of dots being green.  Green dots in that row indicates we are above the daily cloud. Entry and Target Strategy for this trade is discussed below this chart.

(Click on the chart image to enlarge in another window) 

Entry and Target Strategy Nasdaq Emini Futures Day Trade

First, note that in the overnight session (the time between 6PM the prior day and the 9:30AM regular time hours open) that /NQ Nasdaq Emini Futures has tested a small support zone on the 5min chart multiple times and it held.  This gives us some level of confidence that it is a valid stop for this trade.  The Dot Cloud, far right of chart above, shows that entering the regular time session we have had a bit of a selloff as denoted by the 5min, 15min and 30 min rows going red (indicating price is below those clouds on those time-frames) and the hourly and two-hourly are cyan (indicating price is in those time period clouds but not broken below them).  We are anticipating this to be potential support for our long trade.

A conservative entry strategy is to setup a long entry just over the overnight session high at 7441.75 with a target at the first resistance pivot at 7468.75. The stop loss will be the support zone lows as prior mentioned.  This gives us a slightly over 1:1 reward to risk setup (As per chart above).  A more aggressive entry would be to go long above the cloud at about 7430.  Understand our Trade Management strategy for this Day Trade on /NQ Nasdaq Emini Futures below this chart.

(Click on the chart image to enlarge in another window) 

Trade Management Strategy

As can be seen on the chart above, our trade triggered into our standing order on the second candle after the RTH session very bullish open – that was our expectation.  The trade was also confirmed with a bullish arrow trigger on our Wave 5 Elliott Indicator Suite’s stochastic indicator.  Within approximately 20 minutes we have hit our target and taken our profits – 108 ticks on the conservative entry.  Note that some may have wanted to squeeze a bit more out of this trade, however, very shortly after our targeted entry the trade started to show signs of exhaustion as denoted by the negative MACD divergence.  If you failed to get out of the trade at the target the first time you really need to exit this trade at the doji that showed up on the 5min chart.

History Repeats Itself

The very next day, August 24, 2018, this same trade setup provided anywhere from 160 to 200 ticks depending on your trailing stop versus targeting strategy! As per the chart below.

For this trade we used our Main Elliott Wave Indicator Suite for the ThinkorSwim Platform. You can see the Video Tour >>>HERE<<<

AND Our W5T Day Trading Add-On Suite. Watch the Video Tour >>>HERE<<<

By combining the power of these suites we have developed a robust futures day trading strategy as can be seen from the above trading journal of a recent trade.

“Trade the 5th”