Lecture on NASDAQ 100 Futures and Trading Strategies

Overview

• Discussion on NASDAQ 100 Futures March delivery contract for 2023.
• Focus on volume imbalances and daily chart analysis.
• Mention of other market analyses: Euro Dollar, Pound Dollar, Dollar Index, and E-mini S&P Futures.

Key Concepts

Volume Imbalances

• Volume imbalances: Areas where price action is surrounded by candle wicks with no body closures.
• Significance: Algorithms and traders often refer to these points during market analysis.

Trading Restrictions

• Trade focus on NASDAQ 100, Euro Dollar, Pound Dollar, Dollar Index, E-mini S&P Futures.
• No focus on cryptocurrency trading.
• Non-farm payroll weeks: Focus trading only on Monday, Tuesday, and up to the New York Session on Wednesday.
  • Choppy market behavior on Thursday and Friday during non-farm payroll weeks.

Algorithmic Trading Strategies

• Aim for precision and repeating phenomenon in the market for high accuracy.
• Focus on Monday to Wednesday for precise trades and avoiding choppy markets.

Trading Models and Analysis

Timeframes and Tools Used

• 60-minute and multiple lower time frames like 15-minute and 5-minute charts.
• Emphasis on using TradingView and setting charts to New York time.
• Core analysis principles taught across multiple platforms: YouTube, mentorship programs.

Price Action Analysis

• Order Blocks: Significant areas in the chart used to predict price movements.
• Balanced Price Ranges: Single pass completion of price action defining support/resistance zones.
• Fair Value Gaps (FVG): Imbalances where no trading occurred, identified as buy-side or sell-side imbalances.

Trading Entries and Exits

• Smart Money Techniques: Observing institutional trading strategies and aligning retail strategies accordingly.
• Partial Entries: Gradual addition to trading positions based on market behavior.
• Rejection Blocks: Areas where price is expected to encounter resistance or support.

Technical Indicators and Market Compatibility

Cross-Market Analysis

• Comparison Analysis: NASDAQ vs. E-mini S&P, observing relative strength and weaknesses.
• Equivalents for Non-US Traders: US100 for NASDAQ futures, US500 for S&P futures. Suitable for MT4 brokers.

In-depth Technical Strategies

• Emphasis on conditions under which indicators like Fair Value Gaps and order blocks are established and maintained.
• Clarification on the significance of support and resistance levels.
• Minute details on handling different market conditions and identifying significant market structures.

Example Trade Execution

• Detailed Walkthrough: Live annotation and real-time decision-making in a trade setup.
• Trade Management: Entry, pyramiding, partial exits, and trailing stops explanation.
• Market Maker Models: Insight into how professional traders enter, manage, and exit trades.
• Emphasis on patience and emotional control during trades.

Conclusion and Extra Tips

• Realism in Trading: Understanding the challenges and addressing misconceptions about quick profits.
• Final Insights on Broader Markets: Mention of potential concerns with new digital currencies impacting traditional markets like Forex and Crypto.
• Future Guidance: Encouragement to continue learning and understand the inner workings of algorithmic trading for long-term success.

Notes Recap and Study Tips

• Keep charts in New York time on TradingView for consistency.
• Focus heavily on Monday to Wednesday trading during non-farm payroll weeks to avoid choppy markets.
• Study real-time examples and perform back-testing to grasp the concepts firmly.
• Understand the relationship between different market instruments and how to leverage them for best trading opportunities.