This strategy will show you how to trade the Nasdaq index profitably.
What Is Nasdaq?
NASDAQ is a global electronic marketplace for buying and selling Securities. It is also the benchmark index for US technology stocks.
Nasdaq was created by the national association of securities Dealers(NASD) to enable investors to trade securities on a computerized, speedy and transparent system. NASDAQ commenced operations on February 8, 1971.
The term NASDAQ is also used to refer to Nasdaq composite, an index of more than 3,000 stocks listed on the Nasdaq exchange that includes the world’s foremost technology and biotech giants such as Apple, Google, Microsoft, Oracle, Amazon, Intel and Amgen.
Other names for Nasdaq which differ from broker to broker are:
Requirements For The NASDAQ Trading Strategy
- a broker that offers NASDAQ.
- Broker that allows you to trade NASDAQ with 0.01 lots
- Maximum Leverage of 1.500 & not more than this.
- Equity of about $500 and above
- Take trades only on the h1 chart
List Of Brokers Offering NASDAQ For Trading
You can open an account with any of the brokers below to trade this NASDAQ strategy
- Deriv (Listed as US Tech 100 on the financial account) You can learn how to set up the financial account here.
- HotforexListed as USA 100
- XM (Listed as USA 100)
- EasyMarkets (Listed as US Tech NDQ/USD)
- FXTM (Listed as US Tech 100)
How To Identify The Trend Direction For The NASDAQ Trading Strategy
There are many ways to identify the trend of the market and this strategy will be using two exponential moving averages.
Since this is a day trading strategy for NASDAQ, we will look for trend direction on the H1 chart. We will use these two moving averages:
- ema – 9 period (blue color)
- ema – 18 period (red color)
After setting your ema’s your chart will look like the one below :
Buying & Selling Rules For The NASDAQ Strategy
• to confirm the trend change for a bullish market, we wait for the H4 Candlestick to close above both 9 & 18 EMAs. We then place a buy order using the H1 chart
• to confirm the trend change for a bearish market, we wait for H4 Candlestick to close below both 9 & 18 EMAs. We then place a sell order using the H1 chart.
See examples below.
V – PATTERN AND INVERSE
Wait for NASDAQ to show a directional bias on the daily chart. Mark the previous daily low or high and wait for price to come and retest the same level. Look for rejection candles on the retest like Pin bars or engulfing bars. See an example below.
- enter on the retest of previous low/high
- use previous lows/highs for take profit and stop loss levels
- let your stop loss be 100 points and above.
See an example below.
See another example.
Some traders use this strategy in trading forex and stocks but you need to be very careful.
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