Daytraders Bulletin Logo Daytrading the Nasdaq

Daytrading Tips
Nasdaq 100

FREE E-book:
Tips, Tricks & Techniques
for Day Traders
Daytrader's Bulletin Method  |   S&P 500 Corner  |   Nasdaq Nuggets
Technical Analysis  |   Mind & Money  |   Day Trade Management
Day Trading Articles  |   Newsletter for Active Day Traders
Learn Elliott Wavi

Navigation


Mailing List Daytrading News, Articles, What's New

Want to know when new tips are added?  Add your name to our mailing list for our e-mail updates.

 

Recommended Reading

 

Daytrader's Site Search

Site Map
 

Daytrading Signals for Nasdaq 100
By Ralph Russell

The methods used in daytrading the Nasdaq 100 futures index (ND and NQ) are similar to some of the methods used for the Real Time Signals of the S&P 500. See the Real-time Signal's Demo for an example of how the signals work.

Access to electronic trading is recommended. The experience of the trader providing the signals is that market fills can be accomplished in as little as one second through some brokers. This means you hit the "Buy @ Market" or "Sell @ Market" button with your mouse, and in as little as one to five seconds you will know your fill, providing no Internet failure at that time.

We use Exponential Moving Averages as does the S&P 500 Real-time Signal service. We are also using a 34-period Slow Stochastic set to 34, 7, and 4 periods.

We use a smoothed version of CCI that has 34 periods of CCI smoothed with a 10-period Exponential Average.

When we have a trend as determined by the various Exponential Averages, we ignore indications from the Oscillators, as they can be very misleading in a trend.

We rely on the significant mathematical levels the market achieves in relationship to the most immediate movement, in relationship to the day's total movement and in relationship to the two-day total movement in many cases.

We use Math of the Markets a spreadsheet, developed by myself (Ralph Russell) to calculate the various levels. This normally keeps a person extremely busy during the day, as no movement is insignificant. Movement tells us of the possibility of upcoming curves in the road, much as road signs warn us of railroad tracks, hidden stop signs, curves, ice on bridges, and other such changes in condition as one might experience driving.

The 1-Min chart is a lot like a road map. If you remove the time legend from a 1-Min, chart it would be difficult to tell what time frame it is. If you remove the price scale from the chart, you will have trouble showing me the difference between a
1- Min chart and a daily chart. It just takes place faster.

I once had a beginning trader tell me I had just shown him 405 days (almost two years) in one day! There are 405 minutes in one day of 1-Min price bars on an index futures chart for the day only session. From his stock trading experience he immediately grasped the concepts I was trying to relate to him.

You could compare this chart to the instrument panel in a sophisticated aircraft used in instrument flying. Although the pilot cannot see the ground, or anything else around him, he knows from the attitude instruments and navigation tools, what the position of his aircraft is relative to being sideways or upside down, he knows how fast he is traveling, and where he is. He is always measuring and considering distance from various navigation aids and destinations. He is computing fuel consumption and time remaining until fuel is exhausted.

Any time frame chart tells us a lot about the market and what it is doing, and we soon learn to read if what we presently see is going to continue or change. It is these change announcements that clue us into the beginning of a new direction or trend.

We reference a 5-Min chart of the same market along with the 1-Min chart. We also reference, at the beginning of each day, the daily and weekly charts of the futures and the cash indexes appropriate to the market we are trading.

There are no magic indicators, no magic tricks or tools; there is nothing secret that has not been written about in many of the books written about trading and how to trade.

We do admit to using Elliott Wave Theory. This subject can and has filled books and I do not intend to get into any discussion of it here. I can only say that there are definitely waves of emotion in the index futures markets intra day and interday. It is from these waves we try to capture profits.

Normally the beginning and ending of these waves is mathematically determinable to some degree of approximation before they end and a new one begins. This is the "artsy" part of day trading in this writer's opinion. Only experience over hundred's of trades and years of reading everything published, if possible, learning from trading, and learning from talking with other traders, will help solve the puzzle of how and in what way one might make consistent profits in any of these markets.

It is our desire that by following along with our teaching indications you are able to help, or improve, even develop your own successful trading techniques as we broadcast live orders during the trading day in the ND and/or the NQ markets, as well as the S&P 500.



First 48 Days - Trading Nasdaq 100  More Tips
Home  |  Real Time Trading Signals   |  Free Trial / Subscribe  |  The Guide  |  FAQs
Tips, Tricks & Techniques for Daytraders  |  Daytrading Performance
Daytrading Bookstore  |  Daytrading Tools
Privacy Policy  |  Contact Us  |  Site Map  
Copyright 1997-2009 Daytraderís Bulletin There is a risk of loss in futures trading.
Contact Us New at Daytrader's Bulletin Daytrader's Tools Nasdaq Daytrading Tips Daytrading Results Subscribe / Free Trial S&P 500 and Nasdaq Signals Daytrader's Bulletin Home