You have a trade plan but after years of experience you learn that trades of opportunity do present themselves. These are trades that set up outside of the parameters of your trading plan and may violate some of your rules:
- You have completed your “Power of Quitting” trading goals for the day
- Setups occur outside of your tested trading time
- May violate trading in the direction of the trend
Price action tells a story and one thing I tell all my trading room traders is that they should gain knowledge in regards to price action and price patterns such as flags.
Watching the behavior of price and the structures it leaves behind, you will start to notice things that will clue you into high percentage trades of opportunity.
I want to show you how I used experience to bump up my trading account using one of the Netpicks trading strategies.
Trades Of Opportunity – The Build Up
The following video focuses in on two sequences of day trades I took this week, using an 8 tick momentum bar in the NQ (Nasdaq eMini). I think this video is loaded with good learning content and was originally recorded for the Netpicks’ private Inner Circle Membership and Spotlight Power Trader Owner’s Club websites.
Since Netpicks is about trading education as well, I wanted to give the general public a look into what our private members receive as part of our family.
You will learn from this video how I used swing analysis to measure the momentum in the trading instrument. Once I saw the “action” move of the “action reaction” price dance that occurs on all time frames start to falter, my radar was turned on for a short trade.
The short trade plotted and after a double top formation, I took the short trade that was printed right on the chart with a minor price adjustment (we cover adjustments in our training). Price action was in my favor and the declining momentum seen through swing analysis increased the probability of a winner.
Spoiler alert: The trade didn’t work out and I took a small loss.
Trades Of Opportunity – The Resolution
After the trade failed to hit my profit targets (printed on the screen), it would have been easy to take the loss and run.
Understanding the mechanics behind price movement kept me in the game. What if the “action reaction” price action dance on this time frame was part of a bigger dance on a higher time frame?
That would mean a long setup given by my trading system could be the resolution of the “reaction” move and the market is going to make another leg up.
The long trade set up and I took the trade using the price the Spotlight Power Trader told me to enter at.
Everything lined up for a high probability winning trade result.
Watch the video to see if my reading of price action in the context of day trading scored me a winning “Trade of Opportunity” in the NQ (Nasdaq eMini)
Watch in on YouTube and give me a thumbs up if you like it. In fact, so as not to miss any subsequent videos, don’t forget to subscribe to our YouTube channel as well.