NQ Market Review: Trade Recaps and Breakdown

Jul 5, 2024

NQ Market Review: Trade Recaps and Breakdown

Overview

  • Review and breakdown of NQ market's price action for the day.
  • Explanation of two trades based on a trend-following strategy.
  • Utilization of higher time frame for bias and lower time frames for execution.

General Strategy

  • Focus on sweeping inside the zone and getting confirmation.
  • Use higher time frames to determine bias/direction (e.g., 1-hour time frame).
  • Execute trades on lower time frames (e.g., 5-minute, 15-minute, 1-minute).

Trade 1: Morning Session

  • Higher Time Frame Analysis (1-Hour):
    • Expectation of a down move from previous videos.
    • Confirmation with CSS (Close Shift Spikes) above the candle causing the sweep.
    • Price expanded to the upside.
  • 15-Minute Analysis:
    • Pattern: Price expanded up, ranged, liquidated highs, swept lows, expanded up.
    • Traders were stopped out at both sides (buying retests or trading resistance turned support).
    • CSS confirmation noted again.
    • Similar setups on other pairs, but focus on NQ.
  • 5-Minute Analysis:
    • Cleaner entries noted.
    • Price tapped into a fractal, failed to sweep the low, gave CSS confirmation.
  • Execution:
    • Waited until after 10:30 for the sweep and CSS confirmation.
    • Entry on 1-minute, price closed above the candle.
    • 1.5 or 1.6 R return expected.
    • Confirmation from higher time frames indicated a high-probability setup.

Trade 2: Later Opportunity

  • Second Trade:
    • Swept liquidity, break of structure observed.
    • Did not wait for price to return; entered earlier due to strong bullish trend.
    • Targeted 1.5 or 1.6 R, timed the zone entry on a 5-minute analysis.
  • Zone Analysis:
    • 5-minute zones tapped perfectly.
    • Consistent sweeps and CSS confirmations.

Key Takeaways

  • Importance of higher time frame setups for context.
  • Emphasis on combining different time frames for strategic executions.
  • Consistency in looking for sweeps and CSS confirmations.
  • Understanding and adapting to strong trends to avoid missing out.
  • Adjusting entry strategies (e.g., not waiting for perfect zone re-entries in strong trends).

Other Observations

  • Shorts were not recommended in a strong uptrend.
  • Additional setups were also identified but not traded.

Conclusion

  • Open invitation for queries and feedback via Twitter or comments.
  • Emphasis on managing trades and adapting strategies to market conditions.

Happy trading and good luck!