Are you prepared for a sell-off?

Good morning, Traders!

I hope you all had a great holiday weekend! Now that we’re refreshed, it’s time to jump back into the futures trading world.

Today, we’re taking a look at the Nasdaq 100 (NQ) market. While the direction for the market is up, we are watching a possible sell-off developing in the near future.

Depending on how well support holds up, the sell-off could be more significant than anticipated. But don’t worry! This is how the market trades.

After a sell-off runs out of steam, we prepare ourselves for the market to rebound and turn bullish again. That’s how we make our money!

If you need a refresher on how we anticipate market direction, check out this article I wrote.

Now, let’s jump into our timeframe charts and get the details for the NQ:Daily Timeframe Analysis

The daily timeframe for the NQ still shows an overall positive direction. The market is up, but looks to be headed for some sideways price movement. We need to take a look at the one-hour timeframe to get a closer look at the current trend.DAILY TIMEFRAME

The direction within the daily timeframe is up

1-HR TIMEFRAME

The current direction for the one-hour timeframe is up, but a sell-off may be on its way

THE BOTTOM LINE

If/when a sell-off occurs, we’ll wait for a positive U-turn back to the buy zone

Chart the channel

While the direction for the daily timeframe is still up, we need to keep a close eye on the current trend as the NQ sets up for a possible sell-off

Remember that dips in the price shouldn’t worry us. That’s how the market operates. This is when we exercise patience and wait for the price to rebound and head in a direction that allows us to buy in. Take a look at my article on how to recognize market trading patterns for more information.
One-Hour Timeframe Analysis

Taking a look at the one-hour timeframe for the NQ, we see that the sellers are preparing to take control. That means the price will start to head down toward support. And if support doesn’t hold, the sell-off could be steeper than predicted. But if support does hold, we’ll see the price rebound relatively quickly and move toward another bullish run.

Chart the channel

The one-hour timeframe for the NQ shows a sell-off developing. We’ll keep an eye on the price movement and see how long it takes for the market to head back toward a bullish push.

Again, sell-offs shouldn’t scare us away from the market. We need to be patient as we wait for the price to turn back upward and work toward a bullish run into the buy zone. This would be a good time to review my tips on how to enter a trade with counter trendline breaks! Once we see the price pushing bullish and breaking the next counter trendline, we’ll be ready to set up our entry strategy.The Bottom Line

While the overall direction for the NQ is up, it looks like a sell-off is brewing. No worries! We’ll follow our timeframe charts and wait to see how low the overall price drops.

Once we see evidence of a U-turn back toward a bullish run, we’ll draw our counter trendlines and wait for the market to return to the buy zone.

Read up on the differences between long-term and short-term trading to get a better understanding of how we use our timeframe charts for this analysis!

The Bottom Line

The overall direction for the NQ is up, but we need to watch the current trend to prepare for a sell off

You now have what you need to start trading the NQ futures market, so why hesitate? Now’s your chance to start making money with winning trades. I’ll show you how to do it no matter your level of experience, even if it’s zero!

Keep On Trading,

Mindset Advantage: Embrace Pressure

Most professional athletes will tell you there’s good pressure and bad pressure.

It brings clarity and focus when used properly.

Bad pressure causes you to freeze. To panic. Everything speeds up or slows down. Bad decisions get made.

Good pressure? It brings focus, clarity and a keen awareness of the opportunity and hazards that surround you. If you love what you do, trade because it brings you freedom, and see the opportunity it can bring to your life:

Embrace pressure… the good pressure.Traders Training Session

How-to Fibonacci retracement

How-to Fibonacci Retracement Tutorial

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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