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, price had formed a secondary resistance area on the 240 minute chart, price was retesting it but could not break through it. This new resistance area coincided with the fast moving average on the daily, which was significant.

I opted to enter touch brackets on both the Nasdaq and Dow Jones.

Dow Jones
Nasdaq Touch Brackets
Nasdaq

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.

Nasdaq Touch Bracket result
Nasdaq Trade Exit
Dow Jones Exit

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.