A descending triangle on Nasdaq this morning provides profitable trading opportunity regardless of whether you were trading the NQ contract or the Nadex Touch Brackets, binaries or call spreads.
The 45-minute chart on the Nasdaq 100 e-mini futures indicated that a lower high this morning with a strong bearish candlestick pattern. Going down in time to the 12 minute chart, price was at the line of red dots and a bearish candlestick formation was occurring with divergence on the Stochastics. This was the first entry.
After price moved down, the Stochastics and ADX become oversold. Profit was taken as a retracement was likely and a trader’s job is to lock in profits not let them slip away.
The 12 minute indicated the retracement had completed and price was at the line of red dots again. A bearish reversal candlestick pattern appeared with the Stochastics almost at the point of being overbought and another touch bracket was entered.
After price moved down through the touch bracket, a double-bottom formation was forming with both the Stochastics and ADX again oversold. A retracement at this point is likely.