Ten points trading Nasdaq futures short this morning prior to the market opening. The 180 minute was over-extended to the upside and all indications were that the market would move down prior to the opening.
Ten Points Trading Nasdaq Futures this Morning
Knowing that the Nasdaq 180-minute chart was overbought, I waited for the 12 minute and 45 minute ATRs to align. After aligning (both were above price), I then waited for a retest of the ATR at 6330.80, which came after the magenta peak formed on the 45 minute chart. Price tested the ATR but did not break it. A reversal bar was forming so I entered short after confirming with the Stochastics, which aligned perfectly with price.
Price moved down to the congestion dot. It was just a few minutes prior to the opening so I opted to lock in my profits because they love to spike the market in the opposite direction at the opening. My job as a trader is to lock in profits and so I did. It was a good thing I did because they reversed it at the opening. (Click on image to expand.)
By identifying which timeframes are aligning together, profits can be achieved when trading Nasdaq futures. The Diamond Package, which includes the indicators, online video training, skype room, and ten hours of mentoring, provides you with the opportunity to learn how to identify which timeframes to trade, when to stay out of the market, when to trend trade versus when to countertrend trade and how to implement a risk to reward strategy that increases your ability to be successful.