3 Solid Techniques for NQ Business Tickets

The Nasdaq (NQ) futures contract generally trades like most other stock indices, although it does have a few twists and turns that set it apart from the crowd. For anyone who has traded seriously, it is those “twists and turns” that can spell trouble for the uninitiated when trading the NQ. The purpose of this article is to alert traders to some of the idiosyncrasies that are part of NQ trading and how to adjust your trading to take advantage of the attractive parts of the contract and avoid some of the less pleasant results of this instrument. may cause.

There are times when this contract is very easy to trade, especially when it is trending. Of course, you could say that all contracts are easy to trade when trending, but the NQ (due to volatility) presents some unique challenges and can be profitable if you trade the contract correctly. The challenge when trading with NQ is to understand and benefit from the volatile nature of the contract. This can be a double edged sword and the downside to volatility is the tendency for price action to move against your position at a high speed.

In a normal “bracketed” market, you can let the trade run against you, depending on the size of your trading account, but sooner or later (it can be days, weeks or even months) the price action will explode and the Operation that you let run will become your worst nightmare. The best general approach is to trade this contract conservatively and on trend.

Counter trend trading is the formula for destroyed trading accounts in the NQ. You must repeat this mantra 25 times before going to bed each night. “I will not trade against the trend, I will not trade against the trend …”

These are the techniques that have been successful for me when trading with the Nasdaq:

· Reversion to the mean: Like most contracts, the Nasdaq is a great contract to trade using a technique called “Mean Reversal”. This strategy, in general, deters traders from making those horrible break and break trades that are so often the cause of many losses. I usually wait until the price action is between 2 and 3 standard deviations against a tested SMA and I find this trade to be phenomenal. I added some game-changing rules to quantify the trade more precisely and increased the win rate another 15%. I urge you to research this unpopular style of trading and see how truly successful it can be.

· Pay specialized attention to support and resistance (SAR): As I mentioned at the beginning, the NQ is a very active contract and making preliminary assumptions about whether or not the price will move through the SAR is a mistake. A better idea would be to use an order flow program so that you can see the actual order flow in SAR. Are traders pushing the buy side, the sell side, or are the placed orders representing traders in both supply and demand?

· Volume analysis: By now, most traders realize that higher volume in SAR generally results in a pullback of the SAR market. The corollary is also true, low-volume SAR approaches may indicate that the price will continue through support / resistance. I highly recommend using a “Best Volume” indicator to indicate, in real time, the nature of each bar. Obviously, a high volume in SAR often indicates that there could be a reversal of the cards and a low volume indicates a possible continuation of a move. The question has always been, “How loud should the volume be to indicate a change of direction?” Obviously, a high volume in SAR often indicates that there could be a reversal of the cards and a low volume indicates a possible continuation of a move. The question has always been, “How loud should the volume be to indicate a change of direction?”

Is there a method to find the “perfect” entry point to NQ? No, no so much. But you can be good enough to read between the lines and consistently score winners. Good luck in your operations.