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Nasdaq Buying Low and Selling High

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An example of buying low and selling high.

Hey, everyone. I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos. Hey, everyone, Josh Martinez here with tradersagency.com and welcome to this week’s idea. Today’s date is June the 14th, 2021. And behind us is the Nasdaq-100. We have about an 800-tick trading opportunity if we can be patient and wait for the proper entry. Okay. With a E-mini contract, every tick’s worth about $5 and with a Micro contract, every tick’s worth about 50 cents.

So let’s talk about buying low, selling high. Everyone says, how do you make money buy low, sell high? But the question is, do they have the patience to buy low, sell high? So let’s walk through this. So when the markets move, they traditionally will move in waves. Right? And what ends up happening is something like this. So we have the market higher highs, higher lows, higher highs, higher lows. But if you draw a line, what you do is you begin to see that you have an area of U-turn. You have this spot. For whatever reason, the market likes to form U-turns.

So you have this spot here where we are forming a low and the market goes up. We form a low, the market goes up. But right now, we could form a low and the market could go up. And then we also use that area to anticipate highs where the market could fall. Well, when the market is high, the question is, are you going to wait for the low to buy? Now, when you look at it after the fact, the answer is, yeah, of course, I’m going to wait for the low, because I want to buy low to profit high.

But when it comes to a real-world scenario where you have the Nasdaq one-hour timeframe, where every candlestick represents one-hour trading, you will see, we have this blue level and this U-turn, one, two, three, four, five, six, seven, eight, nine times successfully, failed one, two, three, four times. So out of the last 13 times, it’s worked nine out of 13 times. So it’s a very, very high U-turn percentage.

And so when we take a look at the Nasdaq, the market’s very high and there we are. In matter of fact, we’re at the area where the market traditionally forms U-turns. So we have a high, a U-turn, a U-turn, a U-turn, a U-turn, a U-turn, a U-turn, a U-turn, a U-turn, a U-turn, but when you ask someone who’s uneducated and they don’t know how to find these areas, they’ll say, “Hey, are you buying Nasdaq?” And we’ll say, “Well, no, we’re not.” They’ll say why? Because, it’s too high to buy. Yeah, but Nasdaq’s going up. It’s been going up all day long. Right, but it’s too high to buy. We no longer have the edge because if we buy the market now, we’re buying the market where the market, historically, U-turns. And that doesn’t make sense, and so the question’s going to be: are you willing to wait for the market to fall down without you to hit this blue level which has U-turned the market successfully nine in the last 13 times, very high percentage, by the way, to be able to buy it on the way back up, to be able to make an extra 800 ticks, which will be worth 4,000 US Dollars with a full E-mini contract or 400 US Dollars with a Micro? Only you can answer that.

Now, if we go back to the drawing board and we were to outline specifically what we have going on here, you will see that we have support and we have resistance. And when the market comes to the bottom of the blue level, the market goes up, goes to the top level, the market goes down, and so on and so forth. So the question is going to be, when you see this pattern and the common sense is to say, well, buy low, buy low, buy low, profit high, buy low, profit high, buy low, profit high. This is the buy right there. That’s the buy. Are you willing to let the market come down so you can buy it on the way up and have a better experience? So people say, well, buy low, profit high, buy low, profit high, right? That’s how you make money in this market. Well, here’s a great example. We’re too high to buy, but you’d be surprised by how many people would want to still buy the market.

So this week’s idea is to reinforce, buy low, sell high. This is a great example of it. We want to buy low prices in the buy zone where the market’s going up at known levels of U-turn, which is this blue line here. You will see that this blue line has U-turned the market successfully nine out of 13 times. So, it is a major level to pay attention to. So if you can be patient, it could take a few days. It could take till next week. We don’t know how long it’ll take for the market to fall. It can not fall at all and it could go straight up. But if it continues to go up, well, then it goes up without me.

Now, why do we say that? Well, when you look at the market, based on probabilities, your attitude towards trading is different. You don’t need to trade every single day. You need to trade when probabilities are in your favor. And in this market environment, buying low at these known levels of U-turn is where we can repeat success. My name is Josh Martinez with tradersagency.com. That’s this week’s idea, and we’ll see you next week. Hey guys, if you enjoyed this video and you want to stay up to date to my weekly content, go ahead, subscribe to this channel tradersagency.com. If you want to be notified every time I post a video, go ahead and click on that bell down below. If you want even more information, don’t forget to visit my website at tradersagency.com and subscribe to my free weekly newsletter, where I send out my research on market opportunities. Thank you for the opportunity. Have a wonderful day.

4 Comments

  1. Christina Malloy
    June 16, 2021 @ 9:00 am

    Thanks for the information

    Reply

    • Traders Agency Analyst
      July 20, 2021 @ 10:47 pm

      Hi Christina. It’s more than our pleasure, we’re glad you’re enjoying it and finding value in it. We look forward to working with you!

      Reply

  2. James T. Clements senior
    June 27, 2021 @ 11:52 am

    Yeah I’m trying to figure out if this was the free download or did I pay for those this

    Reply

    • Traders Agency Analyst
      July 20, 2021 @ 10:22 pm

      Hi James. Thanks so much for dropping us a note. The research within the article you’ve commented on is FREE to you and our readers. We look forward to working with you!

      Reply

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