NASDAQ - How to Trade

The market makes a good upward movement. After bouncing from the support zone at 7000.00 level, the price could break the local downtrend line and move above 7200.00 resistance. It was possible to buy based on a reversal signal from 7000.00 level or based on a breakout above the downtrend line. Now, the market is far from good entry levels for buying, but we can think about selling. The market becomes overbought, and it will be logical to use reversals from resistance levels and open sell positions trying to catch a correction movement.

Now we have two important levels like 7300.00 and 7500.00 which can stop and reverse the market. Selling from these zones with stop orders above the local swing highs can be a good trading plan. Profit targets for such trades should be placed at 7200.00 and 7100.00 support levels.

As for buying, we will have to wait for the correction movement and buy based on the reversal signals from SMA50, SMA100 or the support levels.

Indicators:
- RSI reached the overbought zone, and it will be able to give a good signal confirming a price reversal
- MACD supports the upward movement
- DMI supports the upward movement and trend market conditions.

The higher market will move without retracement, the deeper correction we should expect. Sell trades must be used with stop orders and probably with trailing stops, as we will trade against the main market movement. If you don't want to take part in risky trading, it will be better to wait for buy aopportunities and open trades in the direction of the uptrend.