With a short bias on the Dow Jones and Nasdaq futures, the Nadex Touch Brackets are a great way to take advantage of potential move even at the market opening. This morning was a great example.
As I mentioned in the Monday webinar, I believed that the indices would retrace but the bigger move would more than likely be to the downside. This is what the higher time frames indicated. By Tuesday morning,
I opted to enter touch brackets on both the Nasdaq and Dow Jones.
The dark red lines indicate the ceiling price; the bright red line indicates the entry price; and the green line indicates the floor price on each chart.
By 12:56 pm New York time the Nasdaq trade was completed as the floor price had been exceeded. At 12:59 New York time, I exited the Dow Jones trade at 26730 as it was running into support.
The Nadex Touch Brackets are ideal for entering prior to the market opening or when a market report is scheduled during the day because they provide a limited risk opportunity. The key is to make sure price has room for fluctuations without being stopped out.