NAS100 - MONDAY'S SMALL SHORT FOR BIG LONG! (TARGET 17265)
As you might have noticed, the Nasdaq is on fire and I'm more of a reversal trader so times are harder. But, there is an old saying that states: "the trend is your ". I forgot the rest but I'll let you figure out the last word. So in homage of this old saying, we'll tighten our bullish running shoes and propose a setup that satisfies both camps. Here's what I see happening on Monday (29/01/2024):
What is on the chart? (follow the steps)
1) We have our liquidity target level which gave place to the continuation of the rally. So far so good for bulls, price is going up and their net worths too.
2) Our first reversal structure, with a low taken out and the high intact.
3) This is our retracement signal, confirming the market structure shift to the downside. This is paired with the fact that price broke the hourly Tenkan and Kijun + the Tenkan and the Kijun crossed over + breaking the Kumo + breaking the latest low. Additionally, the 4H Kijun and Tenkan reside within the 1H Kumo so those too were broken (not shown on the chart to promote clarity). These are reliable reversal signals. I am not trying to be a contrarian against the general trend but, this is how we spot general highs and lows. The daily is simply bullish so it's harder to spot a minor intraday opportunity such as this one.
4) This rejection confirms our reversal idea, and strengthens the probability of sellside liquidity getting taken out.
5) This is our final target, ideally the 1 Hour FVG. Again, on Monday anything can happen of course but this seems the most likely. I want these lows taken out before anything and, therefore we can short in anticipation of these lows getting taken out!
Most importantly, take some rest and have a great weekend! ;)
What is on the chart? (follow the steps)
1) We have our liquidity target level which gave place to the continuation of the rally. So far so good for bulls, price is going up and their net worths too.
2) Our first reversal structure, with a low taken out and the high intact.
3) This is our retracement signal, confirming the market structure shift to the downside. This is paired with the fact that price broke the hourly Tenkan and Kijun + the Tenkan and the Kijun crossed over + breaking the Kumo + breaking the latest low. Additionally, the 4H Kijun and Tenkan reside within the 1H Kumo so those too were broken (not shown on the chart to promote clarity). These are reliable reversal signals. I am not trying to be a contrarian against the general trend but, this is how we spot general highs and lows. The daily is simply bullish so it's harder to spot a minor intraday opportunity such as this one.
4) This rejection confirms our reversal idea, and strengthens the probability of sellside liquidity getting taken out.
5) This is our final target, ideally the 1 Hour FVG. Again, on Monday anything can happen of course but this seems the most likely. I want these lows taken out before anything and, therefore we can short in anticipation of these lows getting taken out!
Most importantly, take some rest and have a great weekend! ;)
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