Good morning, Daily Direction readers!
A lot is going on with the Nasdaq 100 E-mini futures market (NQ). And while the current timeframe analysis looks confusing, I’m here to explain the current setup.
The overall long-term direction for the NQ is bullish. But while that’s true, we could see the market fall before it rallies again.
It’s these sorts of setups that discourage new traders. But, if you really dig into the data, you’ll see that we’re setting up for a good opportunity to buy a multi-tick rally.
Right now, we’re expecting the market to push toward the 15300 price point within the daily timeframe. But the market must form a new low before that happens.
Daily Timeframe Analysis
Right now, the NQ daily timeframe has broken the inner up trendline and is in a bearish trend for the short term.
Based on the current research, we should expect the market to form a low and push toward 15300 within the daily timeframe. That would give us a +4454 tick movement.
If traders are looking for a low-risk trade, it would be wise to wait for the daily timeframe to finish its sell-off and return to a bullish trend.
But if you’re willing to take on the risk, turn to the one-hour timeframe to look for low prices within the buy zone.
Sometimes, taking on more risk is a good thing. It allows us to take advantage of opportunities while waiting for a new trend to develop.
But don’t violate your own strategy to take on more risk. If you’re not comfortable, then just wait until a low risk setup arises.
The Bottom Line
While the roller coaster ride continues for the NQ, we’ll keep our eyes open for opportunities to trade.
Volatility shouldn’t scare us out of the market. With a solid strategy that manages risk, we can use our timeframe charts to get an idea of future price direction.
And with our risk properly managed, the door is open for us to make money even when the market can’t seem to make up its mind as to where it wants to go.
If you’re ready to start trading the NQ, check out my other trading tips for ideas on how to get started.
As your trading account grows, you can utilize my market expertise to establish your own trading strategy! There’s no reason to do this without some kind of structure.
Keep On Trading,
Mindset Advantage: Stop
If it gives you pause… then pause.
How many times have you plowed into a trade… with second thoughts? Once you enter, your stomach immediately drops – the regret is almost unbearable.
Welcome to trading for millions of retail traders. The very thing that’s supposed to bring the freedom, happiness and financial independence they’ve been hoping for… is making them sick to their stomachs.
Why do something that makes you feel less than awesome? Take a minute. Save your money and your account. Collect yourself… practice, watch the videos, talk to one of our traders and get your mojo.
Simply put… Just stop and only trade when you’re ready. There’s plenty of money to be made out there.
Traders Training Session
Stay tuned for my next edition of Josh’s Daily Direction.
And if you know someone who’d love to make this a part of their morning routine, send them over to https://joshsdailydirection.