On February 7 2024 the Nas100 (Nasdaq) was showing signals that the index would extend higher. Below I will explain the reasons why I entered the BUY/LONG trade.
Buy Trade Setup
1. Price and indicator divergence signalling a bullish reversal higher. (Red)
2. Price breaks above a previous lower high signalling a bullish change of character. (CHoCH)
3. Price enters the bullish demand zone and reacts with a move higher. (Gray box)
4. Buy/Long trade entered after a clear visible bounce higher from the demand zone confirming a higher low formed.
NAS100 15 Minute Chart February 7 2024
NAS100 15 Minute Chart February 9 2024
Entered the BUY trade at 17572 with stop loss at 17519. NAS100 moves higher and blasts through the proposed 1:2RR target at 17678 and continues higher to hit the 1:5RR Target at 17837 where I closed the trade for a +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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