NASDAQ TRADSNG STRATEGY
By James Jecool King WHAT IS NASDAQ?
As well as the Benchmark SNDEX for US technology stocks, NASDAQ is a global electronic marketplace for buying and selling securities.
The National Association of Securities Dealers (NASD) established NASDAQ on February 8, 1971, allowing investors to trade securities on a computerized, quick, and transparent
system. The term "NASDAQ" is also used to refer to the NASDAQ Composite, a stock index that includes more than 3,000 stocks listed on the NASDAQ Exchange and includes many
of the top technology and biotech companies in the world, including Apple, Google, Microsoft, Oracle, Amazon, Sprint, and Amgen.
ADDITIONAL NAMES FOR NASDAQ
• NAS100
• US100
• NASDAQ100
• US100CASH
THE PLATFORM
• Trend Dixon
• SNVERSE AND V-PATTERN The Z-PATTERN
• AID AND ASSISTANCE
IF YOU ADHERE TO THE RULES OF THIS STRATEGY, YOU WILL ALWAYS BE RIGHT.
A STRATEGY IS REQUIRED
BROKER OFFERING NASDAQ
• A Broker who permits trading in NASDAQ WSTH 0.01 lots
• DO NOT LEVERAGE MORE THAN 1.500.
• EQUSTY OF ABOUT $500 OR HIGHER
• ONLY ACCEPT TRADES ON H1
RECOMMENDED BROKERS
➢ PEPPERSTONE,
➢ OANDA, and
➢ AVATRADE
TRADING STRATEGY FOR NASDAQ
How to determine the direction of the trend
The most difficult aspect of trading is determining where the market is headed. There are numerous
ways to SDENTSFY the market's segmentation, therefore I won't go into much into here. The term
"trend" simply refers to the direction in which the market is moving. A DOWNTREND OR AN
UPTREND, PLEASE? The difficult part of trading is this.
However, I'll do my best to simplify things for you. There are many ways to predict market trends. I
typically use advanced probability techniques, which are difficult for me to learn. However, if you
read this book, I'll replace the advanced probability techniques with two exponential moving averages
to make things simpler for you. SINCE THIS IS A DAY TRADING STRATEGY FOR NASDAQ,
WE WILL CHECK OUR H1 CHART FOR TREND DIRECTION.
AVERAGE EXPONENTIAL MOVING
THESE ARE THE ONLY TWO MOVING AVERAGES WE USE:
EMA - 18 PERSOD EMA - 9 PERSOD (BLUE COLOR) (RED COLOR)
AFTER CONFIGURING YOUR EMAS, YOUR CHART SHOULD APPEAR LIKE THE ONE
BELOW:
The above chart, which is the one we use to trade NASDAQ, shows your moving averages.
EMA'S RULES FOR BUYING AND SELLING
• WE WATCH FOR A H4/D1 CANDLESTSCK TO CLOSE ABOVE BOTH 9 & 18 EMAS IN
ORDER TO CONFIRM THE TREND CHANGE FOR THE BULLSSH MARKET.
➢ THEN MAKE A PURCHASE ORDER AT H1
• WE WERE WAITING FOR H4 CANDLESTSCK TO CLOSE BELOW BOTH 9 & 18 EMAS TO
CONFIRM THE TREND CHANGE FOR BEARSSH MARKET.
➢ THEN MAKE A SELL ORDER AT H1 HERE SS FOR A SIMILAR PRODUCT:
EVEN ON H4/D1 YOU CAN TRADE THE ANALYSSS, THE TIMEFRAME, AND THE ACCURACY. Trading on higher time frames increases your chances of making a profit.
WATCH OUT FOR CROSSOVERS AT ALL TIMES BEFORE ENTRING TRADE.
V PATTERN AND SNVERSE Let's continue, I hope this makes sense.
V – PATTERN AND SNVERSE RULES
PATTERNS AND INVERSE RULES
• THIS IS SOMETHING YOU WILL DO EVERY SINGLE DAY.
• WAIT FOR NASDAQ TO PICK A DIAGNOSTIC SN A DAY AND THEN RETURN TO RESPECT THE PREVIOUS LOW/HIGH.
Always mark your previous low or high point and wait for the PRSCE to arrive and retest before moving up or down.
• REMEMBER TO ALWAYS WAIT FOR CANDLES TO REJECTS PRIOR TO ACCEPTING TRADE.
• WSLL ALWAYS RESPECT THE PREVSOUS LOW/HSGH, SO BUY OR SELL ON THE RETEST.
• The price may respect the previous low or high, but that setup is invalid as long as the stock price is not forming a V pattern or inverting.
ENTRY RULES
• TAKE THE RETEST.
• ALWAYS SET PREVIOUS HIGHS AND LOWS AS GOALS FOR PROFIT AND LOSS STOPPING.
• ALLOW A STOP LOSS OF 100 POINTS OR MORE.
LET'S LOOK AT A FEW EXAMPLES:
Z – PATTERN
Z – PATTERN RULES
• • WAIT FOR NASDAQ TO SELECT A DSRECTSON WITHIN A DAY, REVERSE FORMATTING A V-SHAPE (SNVERSE), AND THEN COMPLETE THE Z PATTERN.
• • WSLL RESPECT THE PREVIOUS LOW/HSGH AND SHOT UP/DOWN COMPLETING THE PATTERN AS ST REVERSES ST.
• • AVOID TAKING TRADE UNTIL IT GOES UP/DOWN TO RESPECT THE PREVIOUS LOW/HIGH.
• • NASDAQ HAS A PROPENTY TO PICK DIRECTION AND THE REVERSE TO RESPECT THE PREVIOUS LOW/HIGH BEFORE MOVING UP/DOWN UNTIL THE NEXT
DAY.
ENTRY RULES
• • Wait for the user to check a rejection and display rejected candles before making any trades.
• • Immediately after retesting the previous high or low, buy or sell.
HERE ARE SOME EXAMPLES :
LOL, YOU MUST BE CONFUSED ,LET ME CLEAR UP THE CONFUSSON BUDDY!!! ALWAYS RECORD YOUR PRIOR LOWS AND
HIGHS
HIGHLY RESPECTED BY PRICE PREVOUS:
ENTRY
• • Mark your previous HSGH as your first action. • • WAIT FOR THE PRSCE TO RETEST ON THE PRIOR HSGH • • PUT YOUR SELL ORDER IN AND STOP RSDE.
PRICES HAVE RESPECTED PRIOR LOWS:
ENTRY
• • The first thing you should do is to note your prior low.
• • RETEST ON THE PREVIOUS LOW AND WAIT FOR THE PRICE TO DO SO.
• SET UP YOUR BUY ORDER AND RIDE IT UP.
Always use a stop loss to prevent blowing up accounts in the event that the market turns against you.
NASDAQ RETRACE A LOT.
CONFSRMATSON
A bearish reversal pattern may be white or black; the location is what counts.
• The genuine body is at least twice as long as the long upper shadow.
• Has no Lower shadow or only a slight one.
• A shadow that appeared signifies the refusal of higher costs.
• As opposed to a White or Green Shooting Star, a Black or Red one is more bearish.
• Because the price typically trades below the real body, it's crucial to place our stop loss a few pip
above the upper shadow.
• To sell, we search for them at resistance levels.
(c) REVERSAL OF BULLISH
• Market gaps down to a bullish single candle reversal pattern; ideally, a hammer candle is formed.
• Colors come in red or green.
• The lower shadow is at least twice as large as the actual body.
• St has either no above shadow or a very slight one.
• Because the bulls can compel price to close above the opening, a white hammer is more bullish than
a black one.
• Since the price often trades above the hammer, we place our stop loss a few pip below the tail or
wick.
AT SUPPORT TO GO LONG, WE SEARCH FOR THEM.
SUPPORT AND RESISTANCE
SUPPORT AND RESSSTANCE
One of the most common trading concepts is support and resistance; nearly all price action traders rely
on it. S personally believes in support and resistance; if the market were to make them disappear, that
would be the day S would decide to stop trading forex. Strangely, everyone seemed to have their own
opinion on how to gauge support and opposition.
WITHOUT WASTING TIME
❖ THE HIGHEST POINT REACHED BEFORE BEING PULL BACK IS NOW RESISTANCE WHEN THE FOREX MARKET MOVES UP AND THEN PULLS BACK.
❖ The lowest point reached before the market started to rise once more is now support.
As you play a ball in a garage, consider support and resistance. What will happen if the ball hits a wall? I know you understand now. Think of it as if you were playing pool and saw a
white ball moving, hitting that side, coming back and hitting this side. If the force applied was too strong, however, the white ball would jump the pool walls, indicating that we cannot
be in one range of support and resistance.
Briefly stated, I AND R ARE AREA OF MARKET OR PRICE TURN, RESISTANCE IS A PEAK, AND SUPPORT IS A TROUGH.
HERE’S SOME EXAMPLES :
ANOTHER EXAMPLE :
ENTRY RULES
• • WE BUY AT SUPPORT;
• WE SELL AT RESISTANCE; AND, BEFORE TAKING TRADES, WE CHECK FOR
REJECTING CANDLES AT R&S.
A CANDLE TO SEEK OUT: NAMES SHAPES
DOJS
Engulfing pattern
SHOOTSNG STAR /HAMMER/PSNBAR
MORNSNG STAR
PSERCSNG PATTERN
PLEASE READ PRICE ACTION FOR MORE
CANDLES
ALL THE BEST BUDDY…………
Nobody will unlock (do something with) your wealth for you;
you hold the key. Put in the time and effort, and you will be
rewarded. The world is governed by principles, and it rewards
those who put forth effort. GOOD LUCK!!! I would have never
noticed what I have brought to you if S hadn't made the effort,
and I want you to do the same.
SHOWING OFF THE NEW
MARKET
OVERVIEW
Everything you've thought about forex and how the market actually
functions will change as a result of what you'll learn in the upcoming
lessons.
We will discuss market dynamics and trading patterns used by DEALERS to
draw traders into the market.
Additionally, we will discuss how to join the market in accordance with the
Forex Dealers and in opposition to the retail trading head (Market Makers).
WHY SHOULD YOU TRANSACT IN LINE WITH THE DEALER? THE
MARKET CAN SWING THOUSANDS OF PIPS ONCE THE DEALER
MAKES HIS MOVEMENT, AND IF YOU'RE TRADING "IN LINE WITH
THE DEALER," YOU'LL HAVE A MUCH HIGHER POTENTIAL FOR
PROFIT IN A VERY SHORT PERIOD OF TIME
We will also discuss trading psychology and patience, including how to find
trades with risk-reward ratios as high as 1:10 or even 1:20 with little to no
drawdown.
Do you not believe this is feasible? You will be astonished by what you learn
in the upcoming lessons. Be ready to transition into a new paradigm.
FIRST LESSON: THE MARKET MAKERS
THE MARKET MAKERS
The BROKERS, HEDGE-FUNDS, & BANKS with the HIGHEST market
share percentage control the foreign exchange market.
IF THE DEALER (MARKET MAKER) CAN'T GET YOU INTO THE
MARKET, YOU ARE OF NO VALUE TO HIM!
The market maker will either show the "retail traders" some profit once the
majority of them have identified the pattern that is displayed on the chart (to
persuade them to use higher risk, more leverage, and to overtrade), or, once
you, the retail trader, are in over your head in trades with risk at maximum,
the dealer SHIFTS the market completely against you and hits your stop loss
before you have time to react.
HAS THIS EVER HAPPENED TO YOU? DID YOU BELIEVE THAT
YOUR TRADE WAS PERFECT? NOTHING COULD GO WRONG, THE
IDEAL TRADE SETUP WAS IN PLACE, A GREAT ENTRY, WE
THOUGHT. A FEW MORE POSITIONS ARE ADDED AFTER YOUR
FIRST POSITION IS IN PROFIT. THEN QUICKLY THE MARKET
SWINGS IN THE CONTRARY DIRECTION LEAVING YOU
TERRIFIED AND BLOWING ACCOUNT AFTER ACCOUNT?
Retail traders, you know, are remarkably predictable; they view this 5.5
trillion dollar market as some sort of mystical "giving tree" that will make
them rich quickly.
NO MORE.
THE DEALERS
THE DEALER HAS MANY NAMES. MARKET MAKER, LIQUIDITY
PROVIDER,SMART MONEY,etc…
SO WHEN DO THESE "MARKET MAKERS" ACTUALLY MAKE THE
MARKETS?
Market makers are mostly active during London and New York session.
During Asian session, market makers will be replaced with what is known as
a "liquidity-sensitive automated market maker" that will move the market
sideways in perpetual consolidation for about 8 to 10 hours.
This is normally done during Asian session, short 10 hour consolidation
phase is an absolute key for the London and New York dealers . This phase
gives the dealers an added amount of liquidity that is needed to move the
market when the dealers are ready to do so.
The New York Session and the London Session.
During these times the market will move much faster. You will many times
see that once Asian consolidation is over, and London session begins, the
market may move in one direction for the entire length of London session
Then coming into New York session, completely reverse and go in the
opposite direction of London session.
If you trade London and New York session you know this is true, many
times one session is used to fake-out or give a false directional bias to retail
traders , then the session changes over and a complete reversal happens.
LESSON #2- MANIPULATIONS
Let's set aside all we were ever taught as retail traders on technical analysis
in order to comprehend how the market is managed. Why do 95% of traders
lose money if it were actually so simple? Why does the typical trader who
uses the standard method of technical analysis lose all of his money in the
first three months of trading? Why does it take the majority of traders
employing technical analysis more than ten years to even start making
money?
There is much more to trading than just recognizing patterns.
Trading appears to be nothing more than studying charts and identifying
fakeouts, trap zones, consolidation, etc. The simple part is this. But the
toughest thing to overcome is what you cannot see, what lies inside.
Emotions... Can you withstand downturn mentally? Do you have faith in
your skills? Do you make transactions on the spur of the moment or do you
wait for the right opportunity to present itself? Let me share with you
something I call…
PATIENCE
THERE ARE TIMES TO REST AND TIMES TO TRADE. If you are
unaware of when the market moves. A TYPE OF VOLATILITY IN THE
MARKET THAT YOU WERE WAITING FOR COULD TAKE HOURS
TO REALLY APPEAR.
LESSON #3 - MARKET STRUCTURE
Every graph of every currency pair will display different market structure
variations!
This is the basic foundation upon which the market is built.
The purpose of the consolidation phase is to keep traders stuck in the same
price range for extended periods of time with no movement, instilling fear
and terror in the minds of retail traders, and driving the weak to exit their
positions.
Although currency exchange rates may appear to fluctuate randomly, they
frequently follow repeatable patterns. If we can identify these patterns, we
can predict the price movements' directions with a high degree of certainty.
Market prices typically follow patterns, much to how water travels in waves,
some of which are smaller than others but which are always guaranteed to
occur.
LESSON #5- REVERSAL FORMATIONS
Remember how I said I'd show you how to make trades with a risk-toreward
ratio of up to 1:10 or even 1:20 with little to no drawdown? The lesson is
this one.
YOU WILL NEVER NEED ANOTHER FOREX STRATEGY; THIS IS IT.
M/W FORMATIONS OR "DOUBLE TOPS/BOTTOMS" ARE
REVERSAL SIGNS THAT ARE OFTEN SEEN.
NOW, LET'S GO OVER SOME CHARACTERISTICS OF THESE
PATTERNS, AND WHY THEY HAPPEN, BEFORE GOING OFF TO THE
CHARTS AND START TRADING EVERY M/W YOU SEE..
CAN YOU SEE THE "M”?
Market makers frequently spike to or pass the high very quickly with a
single large candle because they need to convince traders that the trend will
continue.
THESE M AND W FORMATIONS ARE FOUND IN ALL
TIMEFRAMES; THE PATTERN IS NOT AFFECTED BY TIME FRAME.
DUE TO THE FEAR AND GREED INSTANCES OF ALL HUMANS, ON
WHICH THE PATTERN IS BASED.
You could even argue that the pattern results from how all humans respond to fear and greed rather
than the chaotic series of transactions.
THE DEALER WILL NEVER GIVE THE EXACT SAME PATTERN
EVERY TIME, SO NOW THAT WE HAVE SEEN THEIR MAIN
PATTERN, WE MUST INTERPRET THE VARIATIONS OF THE
PATTERN.
THE GRASS IS GREENER ON THE DOLLAR SIDE!!!
