After the February 18 2024 NAS100 SELL trade was closed (Read it here>NAS100 : 1:3 Risk/Reward Target Hit) , I posted February 20 2024 on social media @AidanFX the Nas100 buy setup. Below I will explain the reasons why I entered the BUY/LONG trade.
Buy Trade Setup
1. Bullish AB=CD pattern is visible and signalling a reversal move higher. (Light Blue)
2. Watching and waiting for another push lower to the daily bullish demand zone to look for entry. (Gray box)
3. Watch for price and RSI indicator bullish divergence pattern to form in the demand zone to add more confirmation for the buy entry. (Purple line)
NAS100 1 Hour Chart February 20 2024
NAS100 1 Hour Chart February 21 2024 (Entry)
NAS100 1 Hour Chart February 22 2024 (Target HIT)
Entered the BUY trade at 17370 with stop loss at 17112. NAS100 moves higher to the proposed target level (Dark Blue line) and hit the 1:2.5RR Target at 18015 where I closed the trade for a +2.5% gain (Risking 1% on every trade).
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the NAS100 move higher.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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