The year is off to a great start (volatility wise) with a Nasdaq trade to the short side for 17.75 points prior to the US opening. Prior to the market opening on January 2, 2019, the Nasdaq 45-minute chart indicated that price went up and tested the yellow Fibonacci retracement line and formed a bearish bar. Plus, the Stochastics was indicating the market was overbought. This combination indicated a downward move on the Nasdaq.
Looking down to the 3 minute chart, the Stochastics was also overbought and price was testing the 3 minute ATR (average true range stop). Anticipating that the ATR would resist price, I went short at 6206.50. The prior low was at 6188.50, on the 3 minute chart. Price moved down to this area and started forming a bullish bar so I exited the trade.
The gain on the trade was 17.75 points before the market even opened for the US session.
The Guide to Successfully Trading Today’s Markets in 90 Days – Beginner level teaches you how to identify the support and resistance, as well as read the candlestick formations and identify when the markets are either overbought or oversold. Plus, the upcoming Advanced course will teach you how to combine the skills taught in the beginner’s course with multiple timeframes, Fibonaccis and volume analysis.
The Silver Trading Package also includes the Guide to Successfully Trading Today’s Markets in 90 Days – Beginner Level, as well as the indicators, templates, documentation and support.
The Diamond Trading Package includes both levels of the Guide to Successfully Trading Today’s Markets in 90 Days, as well as the indicators, templates, documentation and support.