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This is why trendlines are so important

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Good morning, Traders!

Today I’ll take a look at the Nasdaq 100 E-mini futures market (NQ) as the overall direction for that market is up for both the long-term and short-term.

At this point, we’re waiting for the market to break bullish through the counter trendline and move into the buy zone. Once that happens, we can look for opportunities to buy the market as it makes its way to the 16072.25 price point.

Today’s setup shows why properly drawn trendlines are so important. Without them, we wouldn’t have the ability to determine the overall direction for the market. So, be sure to check out my resources on how to draw trendlines in your charts properly. It’s valuable information that’ll you need to adopt to develop a winning trade strategy!

If the NQ can stay above resistance and push into the buy zone, it will present us multiple opportunities to make profitable trades as it moves to a new high price. My timeframe analysis will give you more details on how this setup works, so let’s jump in now:

Daily Timeframe Analysis

The NQ daily timeframe is currently in an uptrend. That means the market is making higher highs and higher lows as it moves in an overall positive direction.

Currently, the market is showing signs of extending bullish toward the 16072.25 Fibonacci price point. We just need a counter trendline break bullish to confirm everything!

DAILY TIMEFRAME

The long-term direction is up for the NQ

1-HR TIMEFRAME

The short-term direction of the NQ is currently up

THE BOTTOM LINE

The NQ is on the backside of the old channel and is ready to push bullish

Learn more about the Daily Direction Indicators here…

Daily timeframe

The NQ daily timeframe is ready to break bullish toward the 16072.25 price point

Once we get that counter trendline break, we’ll turn to the one-hour timeframe and look for opportunities to execute our entry strategy for this NQ trade setup.

One-Hour Timeframe Analysis

As we look at the one-hour timeframe, we can see that the NQ is getting really close to that counter trendline. All we need is for the market to break through that line and enter the buy zone. Once that happens, we can expect a bullish push toward the up Fibonacci extension.

One-hour timeframe

The one-hour timeframe shows the NQ approaching the counter trendline. Once the market breaks through that line, we expect it to push bullish through the buy zone

Keep in mind that the market moves in waves. As the market makes an overall upward push toward the Fibonacci extension, we’ll observe multiple highs and lows. We want to take advantage of the market’s low prices while it moves through the buy zone.

The Bottom Line

The NQ is ready to push bullish toward 16072.25. We’re just waiting for the counter trendline break to signal that the bullish trend has started. Once that happens, we’ll use the one-hour timeframe to look for a chance to utilize our entry strategy. When we do that, we’ll be on our way to making money with the Nasdaq 100 E-mini futures market!

The Bottom Line

Once the bullish push is confirmed in the NQ, we’ll look to buy the market and start making profitable trades!

Of course, none of this information helps you if you aren’t using my futures trading strategy. So what are you waiting for? Get started today so you can work your way to more profitable trades and leave those losing transactions behind!

Keep On Trading,

Mindset Advantage: Burn The Baggage

You carry it around like George Clooney, in that movie ‘Up in the Air’.

The impossible weight of life and trading – all in one backpack.

Why not unburden yourself?

Don’t just set the baggage aside.

Get rid of it all together.

It can’t weigh you down if it’s not there to pick up again.

This goes especially for trading.

Learn from the losses, the bad entries, and the late exits.

Then get rid of them.

Burn that baggage.

Traders Training Session

Timeframes

Trading Longer Time Frames vs Shorter Time Frames Tutorial

Stay tuned for my next edition of Josh’s Daily Direction.

And if you know someone who’d love to make this a part of their morning routine, send them over to https://joshsdailydirection.com/ to get signed up!

The post This is why trendlines are so important appeared first on Josh Daily Direction.

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1 Comment

  1. mazen
    September 10, 2021 @ 12:07 pm

    you are the grate one you make trand line I love you

    Reply

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