Ranges going to range...NQ still trading within the near-term and intermediate-term range with an overnight bounce versus the key support zone Longby OpinicusTrades0
Options Blueprint Series: The Collar Strategy for Risk ReductionIntroduction to Nasdaq Futures Nasdaq Index Futures offer traders exposure to the Nasdaq-100 index, a benchmark for U.S. technology stocks, without directly investing in the index's component stocks. Trading on the Chicago Mercantile Exchange (CME), Nasdaq Futures provide a critical tool for managing market exposure on the future of technology and biotech sectors. Key Contract Specifications: Point Value: Each point of the index equates to $20 per contract. Margins: As determined by the CME, margins vary, reflecting the volatility and current market conditions. As of the time of this publication the CME website shows a maintenance margin of $17,700 per contract. Trading Hours: Nearly 24-hour trading capability, aligning with global market hours to provide continuous access for traders. It's important to note that similar strategies and benefits are available with Micro Nasdaq Futures , which are scaled down to a tenth of the standard Nasdaq Futures, making them accessible to a broader range of traders due to their lower margin requirements (Margin is 10 times less, point values are 10 times less, etc.) Basics of the Collar Strategy The Collar strategy is a risk management tool used by traders to protect against large losses in their investments while also capping potential gains. It is particularly useful in volatile markets or when significant price swings are expected but their direction is uncertain. Components of the Collar Strategy: Own the Asset: Typically involves owning the underlying asset, but in the case of futures, it involves holding a long position in the Nasdaq Futures contract. Buy a Protective Put: This put option gives the right to sell your futures contract at a predetermined strike price, serving as insurance against a significant drop in the market. Sell a Covered Call: This call option grants someone else the right to buy your futures contract at a set strike price, generating income that can offset the cost of the put option, but it limits the profit potential if the market rises sharply. This strategy forms a price collar around the current value of the futures contract, protecting against drastic movements in both directions. The use of this strategy in Nasdaq Futures trading can be especially effective given the index's exposure to high-growth, high-volatility sectors. Application to Nasdaq Futures Implementing the Collar strategy with Nasdaq Futures involves selecting the right put and call options to effectively hedge the position. Here's how you can set up this strategy: Choose the Underlying Contract: Decide whether to use standard E-mini Nasdaq-100 Futures or Micro mini Nasdaq-100 Futures based on your investment size and risk tolerance. Select the Put Option: Identify a put option with a strike price below the current market price of the Nasdaq Futures. This strike should represent the maximum loss you are willing to accept. The graphics of this article show UFO Support Price Levels below which accepting a larger loss could be seen as a form of hope. Using UFO Support Price Levels as a reference to select the Put strike could be an efficient manner to determine the desired risk. Choose the Call Option: Pick a call option with a strike price above the current market level, where you believe gains will be limited. The premium received from selling this call helps offset the cost of the put, reducing the overall expense of the setup. Selecting a call with its premium equal to the put price would allow for the Collar strategy to be cost-free (not risk-free). Risk Profile Visualization: A graphical representation of the risk profile will show a flat line of loss limited to the downside by the put and capped gains on the upper side by the call. This visualization helps traders understand the potential financial outcomes and their likelihood. Forward-Looking Trade Idea Considering the recent market dynamics, Nasdaq Futures have been experiencing a range-bound pattern after reaching all-time highs. With current geopolitical tensions such as the recent conflict between Iran and Israel, there's a potential for sudden market movements. Scenario Analysis: Continuation of Uptrend: If the market breaks above the range, selling the covered call may yield limited gains but will provide premium income. Significant Drop: If the market drops due to intensified conflicts, the protective put limits the potential loss, safeguarding the investment. That is knowing that if the market was to rebound after a significant drop, the strategy could end up as profitable as long such rebound would happen prior to the Options expiration date. Trade Setup: Entry Point: Current market price of Nasdaq Futures. Put Option: Select a put option below the current market price. The chart example uses the UFO Support Level located around 18,000. Premium paid for the 18,000 Put is estimated to be 511.79 points * $20 ($10,235.8). Call Option: Choose a call option above the current market price targeting the same level of premium as the premium paid for the put. The 18,300 Call is estimated to provide 522.65 points * $20 ($10,453). Expiration: Options with a 1-3 month expiration to balance cost and protection level. This trade example uses June Expiration which is 67 days away from expiration. As seen on the above screenshot, we are using the CME Options Calculator in order to generate fair value prices and Greeks for any options on futures contracts. This setup aims to utilize the Collar strategy to navigate through uncertain times with controlled risk, taking into account both the potential for continuation of the uptrend and a protective mechanism against a sharp decline. Risk Management Discussion Effective risk management is crucial when trading futures and options. The Collar strategy inherently incorporates risk management by design, but understanding and applying additional risk control measures is essential for successful trading. Key Risk Management Techniques: Limited Risk: By default, the Collar strategy is a limited risk strategy where the risk is calculated by looking at the current Nasdaq Futures price compared to the Put strike price and adding or subtracting the Collar execution price for a debit or credit respectively. Use of Stop-Loss Orders: Although the Collar strategy provides a natural hedge, setting stop-loss orders beyond the put option's strike can provide an extra safety net against gap risk and extraordinary market events. Regular Review and Adjustment: As market conditions change, the relevance of the chosen strike prices may alter. Regularly reviewing and adjusting the positions to ensure they still reflect your risk appetite and market outlook is advised. Diversification: While the Collar strategy protects an individual position, diversifying across different asset classes can further protect the portfolio from concentrated risks associated with any single market. Conclusion The Collar strategy offers Nasdaq Futures traders a structured way to manage risk while maintaining the potential for profit. By capping potential losses with a protective put and limiting gains with a covered call, traders can navigate uncertain markets with increased confidence. This strategy is particularly applicable in volatile markets or during periods of geopolitical tension, providing a buffer against significant fluctuations. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.Educationby traddictiv3
NQ Power Range Report with FIB Ext - 4/15/2024 SessionCME_MINI:NQM2024 - PR High: 18243.00 - PR Low: 18147.50 - NZ Spread: 213.25 Key economic calendar event 08:30 | Retail Sales (2x) Maintaining prev week range Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Gap 10/30 +0.47% (open < 14272) - Session Open ATR: 273.76 - Volume: 45K - Open Int: 253K - Trend Grade: Bull - From BA ATH: -2.4% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 18675 - Mid: 18106 - Short: 16963 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions. BA: Back Adjusted BuZ/BeZ: Bull Zone / Bear Zone NZ: Neutral Zone by mv3trader52
1HR Time Frame Short idea for NQ!hr Time Frame +I am anticipating that London will create the high of the day, we have high impact news at 830 so news and 930 opening could be the catalyst for NQ to reprice lower, digging into the sell side. + Key PD arrays on this time frame are as follows. +OTE, 1hr discount FVG and BPR. + Looking to short somewhere in thereShortby diegoulises2814
Short on NQ on the day Daily timeframe +Because we are below the daily FVG on NQ I'm bearish gong into Mondays trading. +I'm watching the mid of the FVG, the low and the middle of the low and mid. +ES has already took its sell side, so NQ could catch up to ES to erase the SMT +We could also fill in the rest of the FVG Shortby diegoulises2810
Supply Zones With Orderflow on BOOKMAPsunday supply levels are being charted as i use bookmap to show what analysis can be portrayed along with upside levels and levels where u can possibly see a short side drop/ Scalp.08:28by lilchawley110
Weekly Plan NQ Futures 4/14/2024Weekly plan: NQH2024 SEED_ALEXDRAYM_SHORTINTEREST2:NQ FUTURES 4/07/2024 18406 >> 18566 >>> 18718 Weekly pivot: 18284, Now 18172, Weekly Open TBD 18063 >> 17934>>> 17734 ------------------------------------------------- Based on the provided levels for the NQH2024 futures contract, here's a weekly trade plan focusing on trading from the pivot to the upside or downside targets: Weekly Pivot: 18284 Current Price: 18172 Upside Targets: First Target: 18406 Second Target: 18566 Third Target: 18718 Downside Targets: First Target: 18063 Second Target: 17934 Third Target: 17734 Trade Plan: Long Trades: Look for buying opportunities if the price remains above the weekly pivot (18284). Entry: Consider entering long positions on pullbacks towards the pivot (18284) or if the price breaks above the current price (18172). Targets: Target the upside levels of 18406, 18566, and potentially 18718. Stop Loss: Place a stop loss below the pivot or below significant support levels identified during the week. Short Trades: Consider shorting the market if the price breaks below the weekly pivot (18284) or the current price (18172). Entry: Enter short positions on breakdowns below the pivot (18284) or the current price (18172). Targets: Aim for downside targets of 18063, 17934, and potentially 17734. Stop Loss: Place a stop loss above the pivot or above significant resistance levels identified during the week. Risk Management: Ensure proper risk management by sizing positions appropriately based on the distance to target and stop loss levels. Consider using trailing stops to lock in profits as the price moves in your favor. Monitor the market closely for any changes in price action or news events that could affect the trade. Note: Always adapt your trading plan based on real-time market conditions and adjust your approach as necessary to manage risk effectively.01:42by dhjesus0
Nasdaq Analysis: Assessing Risks and RewardsThe Nasdaq currently exhibits a compelling trajectory within a well-defined pitchfork channel. While this pattern presents enticing opportunities, it is essential to approach investments with caution due to the associated risks. Investors should be aware that the current juncture is particularly precarious, as any correction towards the pitchfork's last support level could result in losses of up to 23% . Despite the potential for attractive rewards (18%), my investment strategy suggests that the risk-to-reward ratio may not be favorable at this point. For those considering short-term trading, Nasdaq does offer opportunities. However, it is crucial to bear in mind the inherent risk associated with this market. Nasdaq's dynamics are influenced by a multitude of algorithms, adding an extra layer of complexity to the trading environment. My investment method : I am not interested in investing in the indicator at theses prices. Congratulations for thoses who bought at 10k-11k.by MonstralianUpdated 3
NQ plan of the week.This is just the way that i see price action for this week. Price is looking for IRL at the moment. This can be found inside the unicorn model on the HTF. This will complete the MMSM. After taking IRL, price will seek for ERL. Starting with a SMT on ES beginning of the week. (making the low of the week) Just to start a MMBM. Target of the MMBM is the old highs of the model before. PLAN THE TRADE , TRADE THE PLAN. GC.by GC_Futures1
botThe trading strategy using Fibonacci levels 68 and 50 depends on using these levels as support and resistance levels. Here are the steps: 1. **Determining the trend:** Determine the general direction of the market (bullish or bearish). 2. **Entry into the market:** - Look for opportunities to enter the market when the price approaches the 68 or 50 Fibonacci level. - You may want to wait for additional confirmations such as the formation of a candle pattern or the price breaking the Fibonacci level by a certain percentage. 3. **Place stop loss:** - Place the stop loss close to the level at which you entered the trade. - The breakout of level 68 or 50 can be used as an indicator of trend change and as an indicator to place a stop loss. 4. **Determining the target point:** - Set the target point at the desired profit level, in this case it is 30%. - The reward/risk ratio can be used to determine the target point and stop loss more accurately. 5. **Risk management:** - Use a risk ratio of 5% of capital in each trade. - Do not exceed this percentage, whatever the circumstances. 6. **Deal follow-up:** - Follow up the deal regularly to ensure it is progressing as required. - You may need to adjust your stop loss or target point if market conditions change. Please note that you should always analyze the market carefully and use other technical indicators such as the Relative Strength Index (RSI) or moving averages to enhance trading decisions.by ayjaby0
NQ Paper Trade Let see if my prediction is correct!Basing my technical analysis to see if my paper trade will be correct! Price Target of 18449.50 is an area it retested on the daily time frame. Also taking a long position due to price sitting at support level. Price has also retest my trendline to tell me of bullish movement! So hopefully We can get our TP hit!Longby TradedailywithsebUpdated 1
ICT's NQ Market Maker ModelThe market maker model is great for predicting continuation in a directional change in trend. Key to Identifying the MMM is to watch for a major high to be taken then a long period of flat price action (continuation). The sell leg should an match the order blocks on the buy side. Target is the retracement of the buyside leg.by dclemens5612
NQ! Paper Trade! 15min Entry, 1hr to close! Short Position I hit my weekly goal early this week! So decided to paper trade today to show you guys you have to have really good technical analysis to win your trades! I recommend if you’re not trading You have to chart and analyze so you have good chances to win your trades! So now let’s break down this trade that I took on my paper trade account I took the trade at the 15 minute chart and waited for Price action to retest my trendline. Then I jumped to the 1 hour chart to draw a green circle where price will hit at the 1 hour chart To look for order block where price will reach! With great success I was able to close the trade and make a profit of $6241!Shortby Tradedailywithseb0
Friday April 12th 16 pointsWhippy morning, got a breakevenish and then a 16 pointer on the MNQ09:50by andrewjustinwa0
NQ: 4/08/24 - 4/12/24- Bearish, expecting a run through prev. week low after buyside liquidity purge. - SMT at new internal range highs will confirm the idea Goal is 6R on the week. The calendar is dead until CPI Wednesday. It's best to wait until then before going risk on.Shortby mill_zaireUpdated 1
NQ Power Range Report with FIB Ext - 4/12/2024 SessionCME_MINI:NQM2024 - PR High: 18501.75 - PR Low: 18477.00 - NZ Spread: 55.25 No significant calendar events Value back inside of range above 18400 - Prev session closed as engulfing bar - Weekly high lift following widest session range of the week - Holding value near prev session close, below the high Evening Stats (As of 1:05 AM) - Weekend Gap: +0.27% (filled) - Gap 10/30 +0.47% (open < 14272) - Session Open ATR: 260.80 - Volume: 16K - Open Int: 261K - Trend Grade: Bull - From BA ATH: -1.0% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 18675 - Mid: 18106 - Short: 16963 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions. BA: Back Adjusted BuZ/BeZ: Bull Zone / Bear Zone NZ: Neutral Zone by mv3trader51
NQ Hourly Megaphone Visual UpdateVisual update from previous idea "NQ Hourly Megaphone"Longby Eclipse_TradingUpdated 2
NQ Hourly MegaphoneBullish consolidation on hourly timeframe, may coincide with data releases for breakout/breakdownLongby Eclipse_TradingUpdated 1
Back Into Near-Term ResistanceThe key daily support zone in NQ held again this morning and now price trades back into this week's resistance at 18400... Great action today - Patient now!Longby OpinicusTrades0
Growing Divergences in Small vs Large CapsWhat do the labor market and the stock market have in common? They are both showing a huge divergence between the fortune’s big companies and smaller companies. From 2009 to 2021, the large caps in the S&P 500 and the small caps in the Russell 2000 moved more-or-less in lock step. Since the end of 2021, however, investors in the S&P 500 have earned a 9% return. Meanwhile, investors in the Russell 2000 small caps are down nearly 20% from the index’s peak. U.S. Labor Market Survey Data We are seeing a similar divergence in U.S. labor market data as well with a huge gap developing between two different surveys conducted by the Bureau of Labor Statistics. The establishment survey, which is a survey mainly of big businesses, shows over half a million jobs were created over the course of December and January. By contrast, the household survey – which polls 60,000 American families each month and does a better job of capturing job creation among small and mid-sized firms – shows 1.2 million jobs have been lost in December and January, and nearly 700,000 people have left the labor force altogether. The Impact of Interest Rates Why would small businesses suffer while large companies prosper? One reason might be interest rates. Many large companies have significant cash reserves which are now earning 5% returns as a result of Fed rate hikes. Also, many large companies financed themselves by issuing bonds when yields were low during the pandemic. By contrast, many smaller businesses do not have large piles of cash earning interest in T-Bills. They typically borrow from banks and suffer the effects of higher rates more quickly than their larger counterparts. The good news for small firms is that if and when the Fed begins to cut rates, their stocks might outperform the big guys in the S&P. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com By Erik Norland, Executive Director and Senior Economist, CME Group *CME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc. **All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience. by CME_Group6
NQ Power Range Report with FIB Ext - 4/11/2024 SessionCME_MINI:NQM2024 - PR High: 18190.75 - PR Low: 18160.00 - NZ Spread: 68.75 Key economic calendar events 08:30 | Initial Jobless Claims - PPI 13:00 | 30-Year Bond Auction Another margin increase from AMP for expected vol spike - Potential daily inside print - Holding near prev session close - >100 points from prev session low Evening Stats (As of 12:05 AM) - Weekend Gap: +0.27% (filled) - Gap 10/30 +0.47% (open < 14272) - Session Open ATR: 252.47 - Volume: 22K - Open Int: 256K - Trend Grade: Bull - From BA ATH: -2.7% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 18675 - Mid: 18106 - Short: 16963 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions. BA: Back Adjusted BuZ/BeZ: Bull Zone / Bear Zone NZ: Neutral Zone Longby mv3trader50
NQ1 FUTURESfor educational purpose only. expecting lower prices in nasdaq until lower lined marked.Shortby Ashish_Devmurari0