Hello, Daily Direction readers!
The Nasdaq 100 E-Mini Futures Market (NQ) has hit its first limit as it continues its upward march in the long-term and short-term directions!
Right now, we’re waiting for the market to retrace (temporarily drop in price) before it rallies again. That means we’re still actively looking to buy the NQ with the current trend.
Retracements aren’t a bad thing. It just means that the buyers are selling off to take profit and will jump back in once the market hits a lower price within the uptrend. That’s why having a solid trading strategy that focuses on timeframe charts is so important when it comes to understanding futures.
So, with the current setup for the NQ, we’ll watch the market retrace before it rallies again. This will give us an opportunity to find low prices to buy the NQ as it continues to move upward in the short term.
Now let’s take a look at the timeframe analysis to see what’s in store for the NQ:
One-Hour Timeframe Analysis
When we look at the One-Hour Timeframe, we can see that the NQ hit its first limit on the way up to a higher price. While I don’t expect a major sell-off, I do see a retracement coming up.
That means the market will temporarily drop in price before the buyers jump back in. For us, that means we can look for lower prices to buy the NQ as it heads to a higher price again.
Once it rallies, we can expect the NQ to head toward the 17165.75 price point. That gives us the potential for a lot of positive ticks! And remember that tick movements make us money.
We’ll actively look for opportunities to buy the NQ so long as it stays within the current trend.
The Bottom Line
We’ll watch for a retracement within the NQ after it hit our first price limit. But both our long-term and short-term directions are still up for the market.
Once the market retraces and rallies again, we’ll be in a good position to jump in and make good buys at low prices. This is how we reduce our risk and increase our chances of making wise trading decisions.
Our timeframe charts will be critical to our buy-in strategy, so make sure you’re set up and ready!
This is why, in order to develop your trading account, you must have a sound timeframe plan. You’re taking on a lot of risk in the market if you don’t have one.
That’s why it’s time to start utilizing my knowledge and expertise!
Don’t be the one to miss out on this. Follow along as I show you how I find profitable trades within the futures market.
Keep On Trading,
Mindset Advantage: Accept
It’s not the market. It’s not your indicator. It’s TRADING.
Let it go. The first step toward consistent profits comes when you accept the reality that losses will occur.
Prices have a mind of their own at times. The institutions are at the wheel. The sooner you accept this, the more progress you’ll make.
Look at the past, but don’t stare. Accept what’s happened and move on.
Target tighter entries. Get the heck out of those losers you’re hanging on to.
Accept. And start to enjoy 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.