For the second session in a row on NQ price opened above the previous day’s range. Despite a valiant effort to close the gap, there was just too much strength in this market to complete the task, leaving an open gap at 7237.75.
When viewed from a 10 minute chart (pictured below) you can see that price made a new high for the day on the opening drive. The following candle extended that high before turning down and driving price back towards Friday’s trading range, only to come up short.
Once price closed back above the Globex session mid-point, it could not stay below it. If you were keen enough to pick up on that, that would have been your clue to stay long NQ for the remainder of the day.
I was fortunate to catch a good entry on the drive down to close the gap, with my primary target being the Globex mid-point giving me a decent profit on that trade sequence (pictured below).
Throughout the day, I remained patient and let the market come to me and the day ended on a good note. Here is a screen grab of my cumulative net profit curve on the day. FYI, it’s calculated in ticks.
Trade Plan For Tuesday
Today’s Settlement Price is 7300.25. Early Asian market activity has price extending today’s U.S. Session gains. The yearly high/all time high for NQ is well within striking distance at 7358.50. If price continues to trade above settlement (net long) through the opening of the U.S. Session then I will typically look for a counter auction to the overnight inventory and try to capitalize on that. I do not hold a bias, I typically trade both long and short positions on any given day. Part of my trade plan is to sit out the first 10 to 30 minutes of the trading session to allow the market to pick a direction. My motto – Trade what you see, not what you think. The first image in this post has all of the levels plotted on it that would be relevant to tomorrows price action. The only other levels I typically add to my chart at the market open is the overnight high and low levels, the opening print and the opening range.
For anyone that commented on my previous post, I appreciate your comments, and check back in tomorrow to see how it goes.