Nasdaq Narrative
Overall Short term Bearish on Indices. Long term Bullish. All I want to see is for a drop into Sell Side Liquidity, if Nasdaq is Bullish it'll create a Bullish SMT Divergence at the lows with S&P, along with the Daily & Weekly BISI I would expect that to allow for an expansion to new ATHs for NQ.
There's three scenarios that can play out. 1: Just move up higher from right here, price swept minor lows & created an SMT Divergence.
2: Sweep big fat lows and create a bigger SMT Divergence on the Daily Chart.
3: Unlikely/probably won't happen, Drop way way lower than last weeks low.
Number two is the most favorable as it'll allow for a sweep of Asia/London Lows and expand higher during New York Session.
Number one can happen, just more risky, I would just have peace of mind if that liquidity is swept before expanding higher. I've seen too many times where it created an SMT Divergence and did everything else, but did not sweep liquidity, and the trade failed. So the Higher Probability is, we do sweep those lows
With Asia and London Session it'll be clear which one of these scenarios will play out
Summary: Drop down into those lows, expand higher, create Low Of Week around Monday. Monday will be a good trading day as it's NFP later in the week, which usually means Mondays are one of the best days to trade in the week. It'll most likely drop pretty far down, just to end up completely reversing all the way back up
There's three scenarios that can play out. 1: Just move up higher from right here, price swept minor lows & created an SMT Divergence.
2: Sweep big fat lows and create a bigger SMT Divergence on the Daily Chart.
3: Unlikely/probably won't happen, Drop way way lower than last weeks low.
Number two is the most favorable as it'll allow for a sweep of Asia/London Lows and expand higher during New York Session.
Number one can happen, just more risky, I would just have peace of mind if that liquidity is swept before expanding higher. I've seen too many times where it created an SMT Divergence and did everything else, but did not sweep liquidity, and the trade failed. So the Higher Probability is, we do sweep those lows
With Asia and London Session it'll be clear which one of these scenarios will play out
Summary: Drop down into those lows, expand higher, create Low Of Week around Monday. Monday will be a good trading day as it's NFP later in the week, which usually means Mondays are one of the best days to trade in the week. It'll most likely drop pretty far down, just to end up completely reversing all the way back up
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.