Good morning, Daily Direction readers!
We’re watching the Nasdaq futures market (NQ) today as both the long-term and short-term directions are up.
The market broke the counter trendline within the channel and is now pushing bullish toward our next level of resistance.
Keep in mind, however, that this setup is considered high risk. While taking on additional risk is a normal part of trading, it’s entirely acceptable to take a breather until things settle down.
But if you’re ok with extra risk and have studied up on my resources that explain how to manage risk, then be sure to follow my timeframe analysis for the NQ:
One-Hour Timeframe Analysis
The market has broken the counter trendline within the channel and is now pushing bullish toward 15300 in a +4,000 tick movement.
We must remember that this is a high-risk trade right now with all of the volatility in the markets.
With that being said, both the long-term and short-term directions are up for the NQ. We’ll want to pay close attention to our timeframe charts in case there are any odd direction shifts in the market.
For now, we’ll continue to look for opportunities to buy the NQ as the market pushes bullish, but with a strong sense of caution as we take on more risk.
Learn more about the Daily Direction Indicators here…
Taking on additional risk can be a bit intimidating. That’s why I always tell my traders to consider the position very carefully before jumping in.
There’s nothing wrong with waiting until a less risky setup develops.
Either way, make sure you have a strategy that can help you properly manage your trading risk.
The Bottom Line
Both the long-term and short-term directions are up for the NQ now that the market has broken the counter trendline and is pushing bullish toward 15300.
While this setup is considered high risk, following our strategy will allow us to manage that risk as we look to make money from the current bullish push in the NQ.
That’s why having the right strategy is critical to being a successful futures trader!
If you’re ready to start trading the NQ, check out my other trading tips for ideas on how to get started.
You can use my knowledge to develop your own trading strategy as your trading account grows! There’s no real incentive to do something if you don’t have a plan, so make sure you have a good strategy before getting started.
Keep On Trading,
Mindset Advantage: Balance
When it comes to your mindset for trading, you’ll find that your ability to cope with the markets, bad trades, good trades – whatever – has more to do with how you spend your time outside of trading. More specifically, how much balance you have.
In fact, of your total state of readiness, 10% may have to do with charts and price levels. The other 90% has to do with how rested you are. How focused you are. How happy you are.
Find a balance that works for you and begin the path towards happy trading.
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.
The post What to Do When the Counter Trendline Is Broken appeared first on Josh Daily Direction.
