Wouldn't you Short?
There are a few technical reasons (apart from the psychological ones) to consider shorting NQ at this point:
1- Divergence.
2- Wide distance between price, 20 and 200 SMA (thank you Oliver Velez - I owe you this tip! oliver007)
3- Touching the main resistance line.
I expect to see NQ attempting to break 16400-500 area then drop towards (at least) the 20MA.
My trading strategy: Inverted Pyramid.
I started shorting a few lots between 16400-16500.
I will increase the short positions if the price goes higher (16500-16600).
I don't use TPs or LSs
Exit if the total loss reaches 4-5% of my total capital.
Exit in profit when the price touches the 20 SMA and keep some positions open with LS at entry price just to be "in the market" if the price goes much lower.
Good luck!
1- Divergence.
2- Wide distance between price, 20 and 200 SMA (thank you Oliver Velez - I owe you this tip! oliver007)
3- Touching the main resistance line.
I expect to see NQ attempting to break 16400-500 area then drop towards (at least) the 20MA.
My trading strategy: Inverted Pyramid.
I started shorting a few lots between 16400-16500.
I will increase the short positions if the price goes higher (16500-16600).
I don't use TPs or LSs
Exit if the total loss reaches 4-5% of my total capital.
Exit in profit when the price touches the 20 SMA and keep some positions open with LS at entry price just to be "in the market" if the price goes much lower.
Good luck!
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