Another great question from one of our highly valued NTO clients:
They inquired as to the following:
"To easily determine when resistance or support is breached, what is the best approach for plotting the price action as it unfolds during the day?"
Thanks in advance.
Although we go to great length to identify the opening and closing levels of key support and resistance in our comprehensive 3x-per week issuance of the NTO - short-term, and most certainly day-traders - would no doubt benefit to monitor the daily price action against analysis every 5 to 30 minutes contingent upon market action.
The best way to plot the action (against our analysis) as it unfolds - is to acquire an easy to use, inexpensive real-time charting platform.
In doing so, one can quickly replicate a simplified version of any NTO chart of interest, and make notes as to ones pending trade set-ups, entries, stops, profit-targets, or any other relevant information one may wish to recall, monitor, and retrieve over the course of any time horizon.
Once adopted, the way to go about this effectively, is to plan ones strategy and trades in advance - thereby having specific orders in place above or below the market in order to gain entry at adequate breach or breakout of a specific trip-line, or pre-determined “trade of interest.“
Once elected, one would immediately place an order to exit at the corresponding price-target - along with placing and then managing a reasonable, technically-based stop-loss order that is of acceptable risk should the trade go bad.
Stockcharts.com’s most economical package provides one with delayed intraday charting and the ability to store and save annotations for up to 100 charts for ongoing review at cost of only $9.95/mo.
One should not be put-off by the “delayed” charting reference. As far as we can discern – the delays are minimal to non-existent, and should not adversely affect ones resting orders for entry or exit.
In our view, the modest additional cost of having such a tool will quickly pay for itself many times over.
Furthermore, the minimal investment of time required to replicate a singular NTO chart that one trades – will add a level of “feel” and direct-sense of relevance toward each trade.
This added level of personal hands-on involvement, though minor, adds a measurable level of long-term benefit, and is simply unattainable by any other means.
Upon request, those clients who currently use, or plan to use stockcharts in setting up a mirror NTO trading platform, we will share our proprietary chart-settings to replicate precisely, each of the NTO charts one currently trades.
For those trading futures: Tradestation, futuresource.com, or a host of other futures charting platforms that offer a price chart with drawing tools may also be used.
All one needs to do in adjusting the cash vs the futures prices, is to simply adjust the current spread premium differential, and apply that differential accordingly to all of the cash targets and trade triggers.
Should “free” online futures charts fail to provide drawing tools, one only need print a hard copy of the chart traded, whip out a ruler and pencil, and manage one’s trade the old-fashioned way.
As an aside, the old-fashioned “hands-on” approach adds yet another unique benefit of sensing the cause and purpose of a given trade.
We hope the above adequately addresses your inquiry. Do let us know how we may be of further assistance on this or other matters.