In this technical article, we are going to present another Elliott Wave trading setup we got in NASDAQ Futures (NQ_F) . The futures has extended pull back, giving us another buying opportunity. NQ_F completed correction at the Blue Box Area. In the next parts, we’ll explain the Elliott Wave pattern we saw and discuss the trading plan in detail.
NQ_F Elliott Wave 1 Hour London Chart 04.05.2024
Current analysis indicates that NQ_F is nearing completion of wave ((iv)) pullback. The pullback has extended, and the price has reached a new extreme zone at 18057.25-17742.24. Another short-term low would be ideal to complete 5 waves down within the (c) blue leg. Nevertheless, we’re already long from the Equal Legs level at 18057.25. With the main trend remaining bullish, we anticipate at least a 3-wave bounce from this area. Once the price retraces to the 50% Fibonacci level against the (b) blue connector, we’ll secure positions, set the stop loss at breakeven, and capture partial profits. A drop below the 1.618 Fibonacci extension level at 17742.24 would invalidate the trade.
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Quick reminder on how to trade our charts :
Red bearish stamp+ blue box = Selling Setup
Green bullish stamp+ blue box = Buying Setup
Charts with Black stamps are not tradable. 🚫
NQ_F Elliott Wave 1 Hour London Chart 04.09.2024
We eventually experienced another slight push down in v of (c). As expected, the futures have found buyers and are showing a decent bounce from the Buying Zone. We consider the pullback ((iv)) black as completed at the 18052.49 low. Consequently, we’ve made our long positions risk-free: We’ve set our stop loss at breakeven and have already secured partial profits. Now, we’d like to see a break of the ((iii)) black peak to confirm that the next leg up is in progress. Alternatively, if the price breaks below the 18052.49 low, the futures will likely experience a deeper pullback. In that case, long positions will be stopped out at breakeven, and we’ll look to buy the dips again at the next set of equal legs.
Your risk management should be comprised of four parts:
-Small Losses
-Small wins
– Big wins
– Breakeven
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts with target levels in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room
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Source: https://elliottwave-forecast.com/trading/nasdaq-nq_f-another-buying-setup/