Hi Guys,
Ive just opened a sell trade on the Nasdaq using probably the simplest strategy that I make use of from time to time and which has given me some really nice risk to reward trades in the past.
Im actually not that confident of this trade working out because of the ridiculously bullish nature of the US indices at the moment,but its worth a shot.
The strategy is called 5 wick rejection which I learned from a mentor of mine, Steven Hart ( Im not sure about wether I can say where his teachings can be found on the TradingView website so Ill leave that out). Basically the daily chart (Can be any timeframe, although the higher the better) has printed at least 5 wicks that I can draw a line through without cutting the body of any of the 5 candles whose wicks are drawn through.
The caviet to this strategy is the instrument being traded must be at a swing high.
That is it,
You would be surprised how often this happens at market tops or reversal points in history of any chart that you pull up and the dramatic fall afterwards. There is not much else to do except place your stop and profit target. The beauty of it is that it allows for a pretty tight stop loss and if the trade goes as planned risk to reward can really improve your trading statistics.
I always like to use confluence, even though this is one strategy that I will employ without confluence if I cant find any.
The Nasdaq is right at its 1.13 retracement from bear market high to low.
(The S&P is almost there too... I think around the 5000 mark for that index)
If you look at the only pullback the Dow Jones has had after cracking all time highs it was right at the 1.13 retracement of it bear market high to low, so no coincidence that the Nasdaq is facing some strong resistance here.
The Dow Jones is also very close now to its 1.27 retracement , which will be an area I will be looking for sell opportunities on that index.
Hope this info may be useful to some and please use your own due dilligence and use sound risk management if you decide to use any information in your own trading.
Thanks for reading and safe trading all.
Ive just opened a sell trade on the Nasdaq using probably the simplest strategy that I make use of from time to time and which has given me some really nice risk to reward trades in the past.
Im actually not that confident of this trade working out because of the ridiculously bullish nature of the US indices at the moment,but its worth a shot.
The strategy is called 5 wick rejection which I learned from a mentor of mine, Steven Hart ( Im not sure about wether I can say where his teachings can be found on the TradingView website so Ill leave that out). Basically the daily chart (Can be any timeframe, although the higher the better) has printed at least 5 wicks that I can draw a line through without cutting the body of any of the 5 candles whose wicks are drawn through.
The caviet to this strategy is the instrument being traded must be at a swing high.
That is it,
You would be surprised how often this happens at market tops or reversal points in history of any chart that you pull up and the dramatic fall afterwards. There is not much else to do except place your stop and profit target. The beauty of it is that it allows for a pretty tight stop loss and if the trade goes as planned risk to reward can really improve your trading statistics.
I always like to use confluence, even though this is one strategy that I will employ without confluence if I cant find any.
The Nasdaq is right at its 1.13 retracement from bear market high to low.
(The S&P is almost there too... I think around the 5000 mark for that index)
If you look at the only pullback the Dow Jones has had after cracking all time highs it was right at the 1.13 retracement of it bear market high to low, so no coincidence that the Nasdaq is facing some strong resistance here.
The Dow Jones is also very close now to its 1.27 retracement , which will be an area I will be looking for sell opportunities on that index.
Hope this info may be useful to some and please use your own due dilligence and use sound risk management if you decide to use any information in your own trading.
Thanks for reading and safe trading all.
Note
The buying interest in the US Dollar currently lends weight that the US indices are going to have to take a breather. DXY coming out of an inverse Head Shoulders on Daily and consolidated on the neckline with a double bottom and a big green candle to finish the double bottom. Generally that sort of price action warrants respect and is a sign of a pretty strong bullish move.Forex pairs that run inverse of US indices also showing bullish price action.
Note
In saying that DXY has some stiff overhead resistance so it will be interesting to see what unfolds over the next few weeks/ months along with the affect the US elections this year and other macro factors around the world like wars etc. will have on the DXY and the US equity market.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.