image of Nasdaq NQ day trading chart

Day Trading Journal for NQ Emini Futures

We wanted to show you a typical 5th wave trade when day trading futures using our Elliott Wave Indicator Suite , backed up by our “Day Trading Add-On Suite for ThinkorSwim”

First, lets discuss how simple it is to setup a 5th wave day trading opportunity for Futures using a recent trade from our Signals service for NQ on the 13 Sept 2018.  Below is the 5 minute chart for NQ on the 13th Sept 2018 where we have isolated the overnight lows during the Asian session (where all the ABC corrections are).

  • Our Elliott Wave Indicator Suite then automatically labels the Elliott Wave count.  Then as the price pulls back against the Wave 3 high, our Software produces the probability pullback zones you see (below) in green, amber and red. As you can see the Wave 4 found support just in our Amber zone, which gives an 80% probability of the price going on to make a new Wave 5 high in our automated Target zone in Blue on the chart below.
  • Next, our Elliott Wave Indicator Suite has a special 5/35 Oscillator (the top of the three sub-charts, on the chart below).  This measures the performance of the wave 4 pullback and gives further confidence of a potential 5th wave move.  In this case it did pull back between our 90-140% range, which was great.
  • Thirdly, our Elliott Wave Indicator Suite has our W5T False Breakout Stochastic (the bottom of the three sub-charts, on the chart below).  Again, this is to measure wave 4 pull back and give another layer of confidence for a 5th wave move.  The Yellow bar in the over-bought zone denotes a strong bullish trend.  Then during a good wave 4, the stochastic pulls back against this and crosses in the over-sold zone ( You can see this happen below with the red and cyan stochastic).  We also have a green up arrow on the chart and stochastic showing we are good to go for the 5th wave trade.
  • Entry strategies are simple with strict criteria of not going long before price moves through our Special 6/4 MA High line (Green moving average on chart below)

Winner, Winner, Chicken Dinner

As you can see by the chart below, our simple day trading setup for NQ using our Elliott Wave Indicator suite went through our target and made great profit.  Not all day trading setups on futures for a 5th wave are that simple.  So we have developed a special W5T Day Trading Add-On suite for Thinkorswim, that gives even more levels of confidence of a 5th wave move and more.  Below this chart we discuss this further.

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

image of NQ day trading chart 13 sept

What does the Day Trading Add On Suite Bring?

 

One thing our founder, Paul Bratby, always looks for, are “Reasons to NOT get into a trade!”  This sounds counter intuitive, but if you think of it this way – If you have strict rules for trade entry and just one isn’t met, then you DO NOT GET IN. Then the trades you do get in, have a strong probability of Success.  So we say our  “Day Trading Add-On Suite for ThinkorSwim”  gives extra levels of confidence in futures day trades, because it may also give you the reason not to get in a trade.

So lets use this NQ trade from the 13th September 2018 as an example using the slightly exploded view of the chart, as below.

  • You will see our W5T EMA Cloud on the chart below that acts as support at the Wave 4.  If the cloud is broken by a whole candle, then the pull back is considered too deep and we do not get in a 5th wave trade.  So with combining the Fibonacci levels of our probability pull back zones with our W5T Exponential Moving Average Cloud, we see the wave 4 has found very strong support.
  • Next on our  “Day Trading Add-On Suite for ThinkorSwim”  we have our Multiple Time Frame (MTF) Dot Cloud. This is the middle of the three Sub-charts on the chart below and above.  This gives an indication on multiple time frames, where the price is, in respect of our W5T EMA cloud on those respective time frames. Green being above, Cyan in the cloud and Red Below.  The Bottom row of Dots is for the Daily time frame and gives us our main trend.  We do not trade against this trend!! So we are Bullish on NQ at the moment on the Daily and therefore if we had a bearish day on the day trading time frame and a 5th wave opportunity arose to the downside, we WOULD NOT take it.
  • If you look at the Dots during the Wave 4 Pull back the dots change to cyan on most time frames, where the W5T EMA cloud acts as support on those respective time frames.  Then as we start to move away from the wave 4 low on our 5 minute chart, the dots start to turn to green again on higher time frames also.  The minimum requirement is the top 3 rows, 5 min, 15min and 30 min change back to the colour of the main trend before we go into a 5th wave trade. In this case, green.

Summary

As you can see our Main Elliott Wave Indicator Suite is  a powerful tool to trade high probability 5th wave trades when Day Trading Futures on lower time frames.  But now we have our  Day Trading Add-On Suite for ThinkorSwim  , we can view what is happening on multiple time frames with our W5T EMA cloud to give even more confidence of day trading opportunities. We also have a multiple time frame stochastic which will be covered in future articles. Our Day Trading Add On suite also has other day trading  strategies using the MTF Dot cloud, one such example can be read about in this trading journal of a recent trade on ES futures >>>HERE<<< 

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

image of NQ trade using thinkorswim day trading add on suite

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”

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