Why I am shorting the Nasdaq? Even when the trend is upCommon mistake made using trendline
Discussion:
1. 2 rules to draw an uptrend line
2. Primary % secondary uptrend line
3. Common mistake made using trendline
4. Where is its trend now?
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
MNQ1!
NQ/MNQ Breakout or Breakdown?Bulls have had a nice and surprising push after fomc to the upside this week. Will be watching if price respects the DT line and will consider this an uptrend day in a bear market instead of an official uptrend reversal period until DT line is broken and value created above. I like longs above 500 as there is plenty of space for bulls to prop this up above there and short below 340, however, closed the day in key supply zone. Currently also sitting at 61% fib and will see if it can create value above 61% and push to 50% or reject below 61% going into next week. No bias, following the price/momentum and playing what the market gives us going into next week. With fomc, recent geo-political events and simply no news for this run-up, next week will should bring more volatility as well.
NQ1! - Nasdaq Pitchfork Short ExampleJust study the chart and you see the process.
The scene of the crime as my mentor always said ;-) is where price broke down hard the first time. Often than not, price has the tendency to come back to these levels. As it did today.
Price ran into the "Scene Of The Crime" or the "KillZone" and got hit on the head several times. Here you had 3 chances to short the market, with a decent stop, giving you a perfect RiskReward trade.
The target was obvious. The centerline.
Price got there to the tick and turned on a dime.
That was a perfect pitchfork trade.
As for a filter I like to use the RSI or even the MAC and/or the AO. What ever makes me feel good for a trade, I'l take it if I have proof that the tool helps me in my trading.
So, go and study the pitchforks, but don't think its easy. It's simple, that's true, but it's never been easy, at least for me.
The most important part in this trade for me was the Stop. The phrase "Never loose money" is kinda dumb. But it carries a truth. By only risking very less, you are never exposed to loos your "soldiers" in a fight/trade.
#cudosToShaneBlankenshipFromLanguageOfMarkets
NQ / MNQ - Ready to climb and here's whyThe red pitchfork indicates the ongoing downtrend is intact.
The Overshoot below the lower medianline parallel is acting now as support as we can see at the green circles.
The 1,2,3,4 numbered channel (which has nothing to do with the pitchforks btw.) is up-sloping. Point 4 is projected from the slope of 1 & 2, and the attached handle at 3. This gives us the inflection point 4, which converges perfectly with the red L-MLH .
This is a good time to draw a new (grey) pitchfork. And we see how wonderful even the handle touches the prior convergence (green circle & L-MLH).
RSI has already crossed to the upside on the 24th and seems to hold now the critical oversold level to go north again.
To me, these are nice indications that NQ will move to the upside. A superb Risk-Reward Trade.
Nasdaq Going bearish target 14400
/NQ: view : bearish.
Market continued the bull run in the month of Nov but shown the sign of exhaustion of trend.
On monthly charts the presence of Gravestone doji and formation of bearish Diversion on RSI is clearly visible and indicating the trend reversal.
Key support levels:
15600 - Signifies the long range monthly support for bull trend. if broken Market will go in high volatile panic sale.
15150 - Pivot
14800 - Pivot
14400 - Fib retracement level of 23.8% on long time frame.
Every rise is sale till daily close above 16450.00.
if 16450 level is broken only then go long.
NAS100 - can we see a fall? Buy Pressure Zone 😊Technical Overview: - MNQ
We like to see price react to our buy zones providing intraday/scalps as they are not meant to be strong as the lower zone marked :)
Simple, whoever tells you short is selling you lies, you want to be on the safe side? stay bullish on US markets simple as that.
Wait for dips if they happen don't chase the market :)
Analysis is only 1 piece of the puzzle 🧩
Our analysis is a sentiment for the upcoming week, month.
Use this as a weather forecast, you are the person that has to put on a jacket when it’s raining.
Trade this sentiment based off your own entry strategy at the right time.
NAS100 - small Time-Frame Buy Pressure Zone 😊Technical Overview: - MNQ
We like to see price react to our buy zones providing intraday/scalps as they are not meant to be strong as the lower zone marked :)
Simple, whoever tells you short is selling you lies, you want to be on the safe side? stay bullish on US markets simple as that.
Wait for dips if they happen don't chase the market :)
Analysis is only 1 piece of the puzzle 🧩
Our analysis is a sentiment for the upcoming week, month.
Use this as a weather forecast, you are the person that has to put on a jacket when it’s raining.
Trade this sentiment based off your own entry strategy at the right time.
A VERY Promising Nasdaq 100 strategyThis is a video that describes, at a high level, a strategy I recently implemented and automated. It generates very impressive back testing results ans has proven to be very successful in the last 9 days of actual live trading so far...
Enjoy and let me know your comments.
10 steps to a VERY PROMISING NASDAQ 100 auto trading strategy Steps:
1) Fit a SuperTrend indicator (By KivancOzbilgic) on a daily chart
2) Fit another SuperTrend on a smaller timeframe ( when 1 and 2 are green then Bullish, 1 & 2 are red then bearish)
3) Use the TTM Squeeze indicator (By Greeny) to determine entry and exit points
4) Adjust the level of fluctuation you are willing to live with by setting a cap on the ATR level . Your strategy can be 10x more lucrative if you are willing to stomach a 56% drawdown on your account. Reducing the ATR threshold reduces that Max Drawdown but also the profit. It is all about balancing risk with profits.
5) Size the trade positions based on the remaining equity (if your strategy is successful, you'll benefit from compounding, when it is loosing money, you reduce your exposure so you don't go bust)
6) Trade with futures to benefit from leverage
7) Adjust your positions between day and night (the margin requirements are lower during RTH so you can increase your position)
8) Script the whole thing
9) Tweak the parameters of all the above until you get the desired outcome (or until you are sick and tired of it :) )
10) Finally automate the trades by sending the alerts to a webhook URL and send them to your brokerage account using your
Optional: Add safety gates such as Max Drawdown, Max Intraday Loss or Max number of loosing days....
I built a script to quickly play with all the variables as input and back test different scenarios with different chart timeframes and trading windows for the above strategy. The resulting strategy was back tested as far as I could (15 months with the data I have) and the numbers are, what can I say, IMPRESSIVE! The strategy turned 10K into 3,000K with 62% Profitable Trades and 1.8 Profit Factor while keeping the Max Drawdown below 35% over a 15 months period!
Before you ask, no the script does not repaint and yes the result were from a standard candle chart. Finally, commissions are factored in.
I started trading this automated strategy live this week on my margin account using MNQ1!. So far so good... I'll keep you posted...
Disclaimer: Successful back testing is not a guarantee of future success. Trading involves risk and so does automation. The above is not an investment advice but merely an idea. Do your own due diligence and above all, trade safely and stay safe!
MES1! @3700: Structure & Path, Put Butterfly 4 Corrections 3550SPX has rallied non-stop for 9 months, almost, produced a 41% gain that is twice the 1Q's gain. Covid April low is excluded, instead, the monthly average at the time is used as the base of the 2nd gain.
While not calling the timing of the correction from the over-extended market, I intend to position for Jan, Feb, and March with stacked puts or put butterflies.
Zero-interest or not, shareholders with the ultra-low-cost of IPOs (many of them are 10c or less) or shareholders with significant gains across the board, would want to lock in the profit eagerly as we are entering a new uncertainty.
The levels are 3550, 3400, 3225. The first one would be 3650/3550/3450 of Feb, for a longer duration.
For a hedge not too costly, PDS or Put Butterfly would be used to reduce the premium.
MNQ1! Next Stop 12400, Market very heavy w 2 many fluffy stocksThe fluffy stocks or "balloon" stocks with little or no revenues have taking the money flow out of an already pressured "demand" from the market and the mega-caps such as AMZN FB FDX NFLX. It will take very little selling for us to get to 12400, likely before yr end.
NAS100USD NEXT TARGETNASDAQ 100 is testing descending resistance coming from beginning of September. I expect a return from this area but I won't open a position at this point. You may follow confirmation and returns, carefully. 11820 can be first support level, 11520 can be second support level and if it breaks, I will follow ascending support line.
$MNQ_F 3-Press Top Deep Dip For SellersPrice is beginning to show consolidation and range mentality. This could be a significant low reversal area in the bigger scope, but in the nearer term there is potential for a short push back. Normally, I would be looking for a move back to lows and potentially further but with the strength of the double bottom, I don't want to get caught getting stuck at the lows of a reversal which narrows in the targets for now.
$MNQ_F 3-Press Wedge Top Into ResistanceThe #MNQ1! has had a phenomenal wedge formation that broke higher. Now that prices are migrating towards the top of resistance, structural interest begins to take hold showing areas for sellers to potentially initiate new shorts to drive the market down. The daily is bullish, but the faster timeframes haven't shifted just yet suggesting this pop may be a trap for now.