https://i.imgur.com/nwNXegi.png Also, a classic signature 'perfect setup' today. Fade the move on extremes: /ES and QQQ both hit support at the same time on LoD inflection points while volatility hits resistance, all on previously untested points. It isn't a 100% winrate- but it's close enough.
pls explain further your approach. You use NQ, YM, ES intraday futures data + VIX. How you see the alignment for a sweet spot entry counter-trend?
I actually use a combination of futures and cash etfs. I go by what I tend to trade better at individually, then trade when aligned for improved winrate. Also, VXX is used, not VIX, as it is traded with volume and thus has properties of supply and demand based technicals. The alignment itself is simple- if an index hits support while another one does at the same time, it is more likely that I've found a market sweet spot. If you mean picking price points, I basically see historical places where OHLC points occur, and draw price levels through those lines. I also make sure that those points have historically followed the laws of supply and demand- that is, support built on multi tops, gaps with opens along those historical points, etc. I also make sure to use the vehicle that is most reliable. So for the S and P 500, my standalone best vehicle is /ES, not SPY or SPX. For the Dow, I trade DIA best, not /YM as far as line accuracy goes. This is backwards looking methodology, but it has appeared to hold up. From there, I essentially have a set of high winrate standalone vehicles. Combined with the alignment method to take trades only on supply and demand based levels that should work even without alignment, it leads to a fairly high degree of accuracy. This is not limited to countertrend trading, as trend alignment trades are also possible. DIA actually hit that red line in the picture on the high of the day as it was the classic gap down under support and initial resistance test, but no alignment on that one.
