Why I am shorting the NAS100?
NQ weekly chart: I have now 2 positions opened and in loss. I have opened in total 9 equal in value position between 17750 and 18080 (17750,17850, 17950, 17975,18000,18025,18050, 18075, 18080), 6 closed in good profit yesterday and 1 breakeven so I stay safe during the weekend. Overall I am in profit and now I can afford to see NQ move higher if it wants to.
On the weekly chart, price has separated from the 20ma and the 20ma from the 200ma. Looking back in time, whenever they separate this much, price tends to retest the 20ma, even in the strongest bull markets.
To some, maybe it is much better to just buy the dips.. But it depends at what state you are Statistically at this extended bull move that lasted for 72 weeks, I'd rather focus on catching a drop. At the same time, with proper money management, I am not losing while the price is moving against me, I am spreading my entries and cashing profits on minor dips - like yesterday for example. If the price starts trading below the 20ma, I will add to the short positions if I see a reversal at or near a dropping 20ma, hoping it will reach the 200ma.
This is a pure money management approach, useful when the price is moving against you. The key is to make sure the total risk is acceptable. My exit point is 18400.
On the weekly chart, price has separated from the 20ma and the 20ma from the 200ma. Looking back in time, whenever they separate this much, price tends to retest the 20ma, even in the strongest bull markets.
To some, maybe it is much better to just buy the dips.. But it depends at what state you are Statistically at this extended bull move that lasted for 72 weeks, I'd rather focus on catching a drop. At the same time, with proper money management, I am not losing while the price is moving against me, I am spreading my entries and cashing profits on minor dips - like yesterday for example. If the price starts trading below the 20ma, I will add to the short positions if I see a reversal at or near a dropping 20ma, hoping it will reach the 200ma.
This is a pure money management approach, useful when the price is moving against you. The key is to make sure the total risk is acceptable. My exit point is 18400.
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