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Hey, everyone. Josh Martinez here and welcome to this week’s idea. We’re going to try out a new microphone, so hopefully this microphone is a little bit better than last weeks. Let me know in the comment questions down below. If not, we’ll try one more microphone to see if we can get everything synced. Okay, so let’s get started. In front of you is the risk disclaimer. This means that there is risk involved. You should never invest money that you cannot afford to lose. Always keep risk management in mind. Understand that we are not CTAs, which stands for Commodity Trading Advisors. And what that means and what I’m going to share as research. what a person does with this information is up to them. Now because we are not CTAs, Commodity Trading Advisors, we cannot dictate trades and we cannot provide customized investment advice. What that means is what we’re going to share as research, what a person does with that information is up to them.
Now we’re going to go and provide hypothetical or simulated opportunities. We’re not utilizing a live trading accounts. So we’re going to go into the live market, look at the data, and then from there, share with you our research. So with that being said, let’s get started. We’re looking at the NASDAQ 100, very popular, simple. This one is all on the daily timeframe, so every candlestick represents one day of trading. Trading with an E-mini Contract, every tick is valued at $5, and when trading in Micro contract, every tick is valued at 50 cents.
So when trading, one of the things I really like to do, is I really like to find the known levels of U-turns. One of the ways that I do that is I draw my trendlines backwards. Oftentimes when most people are taught to draw trendlines, even the way that I was taught to draw trendlines, they start from the lowest point and then they work their way forwards. And oftentimes a trendline like this, in my humble opinion, isn’t really beneficial. A lot of it’s because it just doesn’t simply work. What I mean by that is trendline do three things for us. Number one, they give us buy zones, sell zones, which is the direction. Number two, they give us the overall speed, how fast or how slow the market is. And number three, they give us U-turn opportunities of entering into the market, or notifying reversals or seeing reversals.
If you were to draw your trendlines back when they first originated, you can see that following the rules, which is starting from this low and connecting them across the board, you will see that it worked maybe one time here, but then you have to readjust. And then you get a trendline break and then readjust, you get another trendline break and then readjust. You would notice how this trendline is continuously being broken and continuously readjusting. which basically what that means is, for whatever reason, the market is just not following the angle of this trendline.
And when the market is not U-turning at the angle of the trendline that you’re using, frankly it’s just a big waste of time. And you can kind of see here the market, once again broke the trendline, and then made new highs, which means all of these, this trendline is just continuously being a false trendline. Even here, you got a false trendline break. When the market breaks your trendlines, the markets should reverse, they should not be making higher highs. And ultimately when I understood that concept as a trader and I said to myself, “Okay, well trendlines give me direction, market speed, and U-turns. If it’s not doing those, then I shouldn’t be using the trendlines the way I’ve been taught.”
And what I’ve learned is if you are focusing in on finding the U-turns, you really should be looking at the market and then drawing your trendlines backwards, and then connecting them to the angle that is U-turning the market. So see clearly for whatever reason, the mark has been U-turning at, on, and/or around this angle. Now, if this market breaks this angle that has U-turned the mark 1, 2, 3, 4, 5 times since June of 2020, then I can expect the market reversal. But if it doesn’t break that U-turn, then ultimately I’m going to expect the mark market to go up because that’s been the pattern.
Now what’s neat about this pattern is it’s been around for quite a while, and the market’s been going up about 6,000 ticks. Now remember, when trading a full contract, every tick is valued at $5. So, we try to E-mini, this is a $30,000 buying opportunity with a Micro contract, it’s still $3,000. So buy the bottom level, take profit top level. Go cancel, buy the bottom blue level, take profit the top level. Buy low, profit high. Buy low, profit high. Buy low, profit high. Buy low, profit high. So this has been working really, really well and here we currently are. So we’re going to anticipate, and we’re going to expect this mark at the rally, nearly 6,000 ticks toward the top of the channel. Near price point 1.5966 area. I like to buy in confirmation, so I like to find the angles that are pushing the market down. And you can see what I just drew in here. I just basically found this angle and this angle’s been pushing the market down. You see market fell here, market fell there, market fell there.
If we can break and close above it. Basically lets me know the buyers are back in control and that the markets should extend. If the buyers can’t break and close above this blue level, there’s no buying trade. And even if the market does sell off, there’s no buying trade so therefore there’s no loss. And to me, that’s a big benefit. We can go to a one hour timeframe, look for counter trendline breaks. Look for kennels formation. Look for Fibonacci’s, are your favorite entry strategy, et cetera. Winner if the market gets into the buy zone. All right, that’s this week’s idea looking for a 6,000 tick push on the NASDAQ 100 and the up channel. This is Josh Martinez. Let me know what you think of the audios. The audio good this go around. If not, I have one more, one more try. This is Joshus Martinez.
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