Good morning, Daily Direction readers!
It’s been an interesting couple of weeks. We’re still not trading Nasdaq 100 E-mini futures as we wait for the market to get to a new low price and turn bullish again.
I know that waiting for a market to get back into a buyable position is annoying. But this is what smart traders do. We can’t let our emotions overcome good strategy!
The minute we jump into a trade simply because we’re tired of waiting is when the market will decide to throw us a curve ball and ruin everything.
Right now, the NQ is near the top of the up channel, preparing to sell off toward the bottom. But as long as it stays near the top, we’re out of the market.
The NQ’s long-term direction is still up. That means we’ll have to wait for the price to return to the bottom of the up channel before considering purchasing the market.
If we buy now, we risk grabbing the NQ at a high price just before a sell-off. And, because our goal is to make money, a situation like this would be disastrous for our account.
For now, we’ll wait for the NQ’s short-term trend to reverse and reward us with a positive return to high prices.
The greatest technique for deciding when the market is ready to buy is to look at timeframe chart. It’s that simple.
Daily Timeframe Analysis
Despite the fact that the current data points to a sell-off, the NQ on a daily timeframe chart shows that the market is still too close to the channel’s top.
This indicates that the market is just too pricey to buy right now owing to the possibility of a price drop. We want to buy low and sell high in order to make money. Anything that is incompatible with this should be avoided at all costs.
It’s all about managing our risk in order to make more successful trades.
The long-term direction is up for the NQ
The short-term direction of the NQ is still down
The NQ is at the top of the channel and is preparing for a sell-off
Despite the fact that we are now out of the NQ, now is an excellent opportunity to plan our buy-in strategy while we wait for the market to return to the bottom of the up channel.
Keep in mind that the NQ has a positive long-term future. This means that in the short term, we’ll eventually return to a buyable position.
The Bottom Line
I’m staying away from the NQ market at the moment since it’s gone beyond our price limit, surpassed the channel’s top, and is about to drop off. Before a new bullish rally takes hold, I expect a selloff, driving the market near the channel’s bottom.
Though we aren’t trading the NQ waiting for the sell-off, we will have a great opportunity to enter the market if a new low price is reached. All we can do now is wait and watch what happens.
You’d be absolutely lost if you didn’t have my technique to guide you through the current movements of the NQ futures market. That’s why it’s time to start utilizing my knowledge and expertise! You can’t afford to miss out on this.
Keep On Trading,
Mindset Advantage: Breathe
If you’re not breathing, you’re not focused. If you’re not focused, you can’t see the market. Opportunities slide by in an instant. Hazards reveal themselves only when it’s too late.
You need to breathe. Breathing exercises have proven to reduce stress and increase focus.
Sure, you’re already breathing if you read this. But when you trade… you need a breathing regimen. Whatever it is: Through your nose, out your mouth counting to 10 or 100. Find a method and routine that works for you.
You’ll find balance, clarity and focus when you trade. Your heart rate will come down and you’ll just feel better.
Try it. And enjoy your 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.com/ to get signed up!