Sometimes all the puzzle pieces fall in place for a particular market, creating an excellent opportunity for trading. It’s like a perfect storm for making money!
That’s what we’re seeing in the Nasdaq 100 (NQ) right now! The long-term and short-term directions are up. The market is hitting support and preparing for an upward bounce toward a major bullish rally.
If everything holds together, we could see a +5,441 tick push upward. That’s a $10,000 opportunity for traders who can buy four micros at $2 a tick! For more information on how ticks work, check out my training video on ticks and contract sizes.
Now let’s turn to our timeframe analysis to see how this trade is developing:
Daily Timeframe Analysis
A quick look at the daily timeframe shows that the overall market direction is up, with support holding and the price rebounding back toward a higher price (blue arrow).
Remember that the purpose of the daily timeframe is to help us confirm the high and low prices for the market’s overall direction. We build our strategy around these timeframe charts. And those charts build on one another. That’s why it’s vital that we always look at our timeframe charts before making a decision to trade.
The NG daily timeframe confirms that the market direction is up as the price rebounds off support (blue arrow).If support holds, we could see an impressive rally develop shortly. Let’s turn to the one-hour timeframe to confirm our analysis…
One-Hour Timeframe Analysis
As we look at the one-hour timeframe for the NQ, we can see that support is holding beautifully and setting up for an impressive bullish rally.
If support can hold and the market pushes through the counter trend line (diagonal grey line), then we could see a +5441 tick bullish movement. That’s a significant upward push! Check out the chart below to see what I mean:
The one-hour NQ timeframe is maintaining support at the current level, setting up a potential +5441 tick rally (upward green arrows)
Once the market pushes through the counter trend line, it’ll be in the buy zone. That’s when we’ll apply our trading strategy and look to buy into the NQ. This has the potential to be a serious moneymaker!
The Bottom Line
With a possible $10,000 opportunity developing, this is a trade that you’ll regret mission out on once the rally starts. As soon as the NQ breaks through the counter trend line, we’ll be in the buy zone, and the +5441 tick rally will start to take off.
The overall direction for the NQ is up!I’m keeping an eye on this, and so should you. If you want to learn more about how to get into this opportunity, be sure to follow me as I set up my trades and watch the prices rise!
Mindset Advantage: Greed
We hear the same story time and time again: the money gets made, the profits are amazing. And then it’s all given back to the harsh maiden of the market.
It’s not because the money isn’t there to be made. It’s often due to good old fashioned greed. Stops get pushed back. Targets get forgotten. That trade made $100… why not turn it into $500 or $1,000?
These are the traps that snare 95% of the profit. Take what the market gives you and go about your business. ‘Honor thy stop’ and your risk reward ratio. Don’t take that trade if you don’t feel good about it.
The ones you don’t take, or the ones that you end up stepping out of… those are the ones that keep you on the path to consistent profits!