1st Possible Top: Nasdaq has currently retraced 50% of the candle that made the last all time high. Many traders who trade candle stick patterns will take profit on the next candle that retraces half way up the wick of the topping candle and this is exactly the setup we have here.
2nd Possible Top: There is overhead resistance from an ascending trend line and also a possible double top. As you can see, trend lines are well respected on the monthly chart and if you follow them closely, you would have been able to buy the bottom back in March. I was also able to predict the top of SPY using a similar overhead trend line, please see my related idea below.
I understand this analysis may be too simple for most people to take seriously, but keep in mind that most institutional traders keep it simple and trade using line charts. They have the patience to stay in trades for long periods of time and are able to wait for the perfect opportunity to execute their trades. If you made trades based off either of these two trend lines, chances are you may have made more money this way than any other trading method.
2nd Possible Top: There is overhead resistance from an ascending trend line and also a possible double top. As you can see, trend lines are well respected on the monthly chart and if you follow them closely, you would have been able to buy the bottom back in March. I was also able to predict the top of SPY using a similar overhead trend line, please see my related idea below.
I understand this analysis may be too simple for most people to take seriously, but keep in mind that most institutional traders keep it simple and trade using line charts. They have the patience to stay in trades for long periods of time and are able to wait for the perfect opportunity to execute their trades. If you made trades based off either of these two trend lines, chances are you may have made more money this way than any other trading method.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
