On Sunday, I warned everyone that likes trading Nasdaq, there would be a retracement on the Nasdaq but there would likely be a new low put in because of the reversal bar on the monthly plus I explained the retracement on the USDJPY (actually all the Yen pairs).

On the USDJPY there were 4 trades – 1 touch bracket (about $20 per contract in profit) and three binary options (average of $45 in profit per contract). All four trades made profits as price did go up but struggled with the ATR on the 60 minute chart.

USDJPY Touch Brackets and Binary Options
USDJPY Touch Brackets and Binaries

Trading Nasdaq

On the Nasdaq, I also anticipated a retracement but also knew the overall bias was to the downside. I took an early morning touch bracket up. Then exited as price approached the 60 minute ATR. The first blue line (closest to price) represents the ATR on the 60 minute and the second blue line represents the congestion dot. As you can see from the chart, the ATR and congestion dot were rejected with bearish divergence. This provided another second entry, short, using touch brackets.

The exit was off the bullish divergence. Then price goes up to the moving averages and another bearish entry (3rd entry) was generated for another touch bracket. Exit was the Stochastics being oversold.

Nasdaq Touch Brackets
Nasdaq Touch Brackets

The long touch bracket on the Nasdaq was a counter-trend trade but still produced over $100 in profit per contract. The two shorts were trend trades and each produced over $200 in profit per contract.