It’s Friday, fellow traders!
Today, we’re tracking the Nasdaq 100 E-mini (NQ).
We’ve followed this market for the last few days, waiting for the NQ to move back into the buy zone and give us opportunities to buy the market. And based on the current timeframe analysis, the NQ is now at a high price within the current buy zone as it approaches resistance.
So what does that mean? There’s a risk of the current price dropping before continuing its move toward our limit. Or, the market could continue to move above the channel before giving us a low price.
Those are the two approaches you can take to this market. Both come with their own risk factors.
But let’s look at the timeframe analysis so you can see how I would approach this trade:
Daily Timeframe Analysis
The daily timeframe shows that the NQ is at a critical juncture. If you buy now, the market could continue to rise, but there’s the risk that it sells off toward a lower price. And if you wait for the market to dip to a lower price, you could miss out on the market pushing toward the top of the channel.
The long-term direction is up for the NQ
The short-term direction is down as the market approaches resistance
The NQ is moving to higher prices within the buy zone
Learn more about the Daily Direction Indicators here…
We’re waiting for a low price for the NQ
That’s when we turn to our one-hour timeframe to see the risks and rewards for each approach. The chart illustrates what can happen depending on which strategy we adopt.
One-Hour Timeframe Analysis
As we look at our one-hour timeframe for the NQ, we see two possible approaches we can take for this market. Either buy now while assuming it will rise, or wait assuming it will drop before pushing bullish again.
For me, the best idea is to wait for the market to give you a low price after a drop within the buy zone toward the bottom of the channel or after the market pushes above the current channel. That way, you reduce the risk of missing out on a continued bullish push or getting stuck in a sudden sell-off.
With the NQ entering the buy zone, the short-term direction is down as we approach resistance
Remember that managing risk is one of the most important parts of any trading strategy. Don’t take unnecessary risks. Always have a plan that projects your money while working to grow it!
The Bottom Line
While the NQ is currently in the buy zone, the market is at a high price. As it approaches resistance, we can expect the market to either drop toward the bottom of the channel or push through the top. Either way, it would be wise to wait until the market gives us a new low price.
The NQ is at a high price within the buy zone
This trade is an example of why following my strategy is critical to making the best decisions for entering a market. Without it, you won’t have the foundation you need to increase your chances of making money in the market! So it’s time to stop putting this off. Join me now to start growing your trading account!
And before you go, I need you to check out this strategy that can help you make an extra $400 to $1000 a day. I know it sounds crazy, but it makes total sense once you understand it! Here’s how to learn more.
Keep On Trading,
Mindset Advantage: Ignore Herd Mentality
Those talking heads will get you into trouble.
They’re entertaining and have a lot to say. And yes, they bring you information. But when it comes to your trading, those talking heads can cost you a lot of money.
Why? It’s their job to entertain and retain viewers.
They’re not there to give you the entry or exit strategies, let alone any insight that will provide an advantage.
By the time the information is coming out of their mouths, the market has already responded.
And when it comes to news that’s about to come out, they really don’t know what’s happening. So don’t let them whip you into a frenzy. Please don’t take the information they provide and place a trade on it.
Don’t follow the herd. It’s headed over a cliff.
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.