The Only 99% Profitable Nasdaq or US100 Strategy You will ever find
TLDRPatrick introduces a profitable trading strategy focused on the NASDAQ and US100, emphasizing the importance of understanding the market's starting and ending points, as well as a key support level he refers to as the 'backbone'. He advises traders to enter trades at the beginning of the Sydney session and to be cautious during overlapping sessions, especially between New York and London. Patrick also stresses the significance of risk management, suggesting strategies for taking profits and managing losses.
Takeaways
- 📈 The NASDAQ has a predictable starting point at the beginning of the Sydney session and an ending point at the end of the New York session, often marked by a gap.
- 📊 Utilize the 'sessions by Lux algo' indicator to visualize these points and set it to show only the Sydney, London, and New York sessions for clarity.
- 🏗️ Identify the 'backbone' of the NASDAQ, a key support and resistance level that the market respects consistently throughout the trading day.
- 🔄 Expect the market to bounce off the backbone when it approaches this level, presenting potential buying opportunities.
- 📉 If the market manages to break through the backbone, anticipate a retest and be prepared to sell as it may drop back to test the key level again.
- 🚫 Avoid trading the NASDAQ during the overlap of the New York and London sessions as the market can be highly volatile for inexperienced traders.
- 📌 Use the first candle of the Sydney session as a reference point to determine entry and exit strategies for trades.
- 📈📉 Implement risk management strategies such as taking profits at 15-20 pips and moving the stop loss to entry after one trade is closed for the remaining open trades.
- 💡 Emphasize the importance of backtesting strategies independently to internalize the concepts and make them one's own.
- 🌐 Encourage subscribing to the channel for more trading tips and strategies to enhance one's trading skills and knowledge.
Q & A
What is the main focus of the video script?
-The main focus of the video script is to introduce a profitable trading strategy for the NASDAQ and US100 markets, emphasizing the importance of understanding the market's starting and ending points, as well as a key support and resistance level referred to as the 'backbone'.
What is the significance of the Sydney session in the NASDAQ trading strategy discussed?
-The Sydney session is significant because it represents the starting point of the NASDAQ trading day. The strategy suggests that traders should pay attention to the gap that often occurs at this time, as it can indicate the market's direction for the rest of the day.
How does the video script recommend identifying the 'backbone' of the NASDAQ?
-The 'backbone' of the NASDAQ is identified by highlighting the first candle of the Sydney session and extending a line across the chart to the end of the New York session. This level is considered a key support and resistance area that the market is expected to respect.
What is the recommended approach when the NASDAQ tests its 'backbone'?
-When the NASDAQ tests its 'backbone', traders should expect a bounce in the market. If the market moves upward and approaches the backbone, it is a potential buying opportunity as the market is likely to bounce back down. Conversely, if the market moves downward and tests the backbone, it could be a selling opportunity as the market may bounce back up.
Why is the overlap of the New York and London sessions considered risky for traders according to the video script?
-The overlap of the New York and London sessions is considered risky because the market often becomes highly volatile during this time. The script advises new traders to avoid trading during this period to prevent potential losses due to sudden and unpredictable market movements.
What is the strategy for managing risk in the NASDAQ trading strategy presented in the video script?
-The strategy for managing risk involves setting stop losses and taking profits at appropriate levels. Traders are advised to start with a few trades and move their stop loss to entry once they have made a small profit. This allows them to close one trade in profit and hold the others for potentially larger gains.
How does the video script suggest traders familiarize themselves with the NASDAQ trading strategy?
-The script suggests that traders should practice the strategy and do their own backtesting to become familiar with it. By applying the strategy to historical data, traders can gain a better understanding of how it works and develop their own insights and confidence in using it.
What is the importance of the first candle of the Sydney session in the NASDAQ trading strategy?
-The first candle of the Sydney session is important because it sets the tone for the rest of the trading day. A clear close above or below this candle can indicate a potential buying or selling opportunity, respectively, and traders should watch for these signals to make informed trading decisions.
How does the video script advise traders to handle losses in the context of the NASDAQ trading strategy?
-The script advises traders to manage their losses by not risking too much on any single trade and by using the 'backbone' as a reference point for potential reversals. If a trade goes against them, they should look for opportunities to win back their losses by entering new trades when the market approaches the backbone or shows other clear signals.
What is the role of the 'backbone' in the NASDAQ trading strategy?
-The 'backbone' is a critical component of the trading strategy as it represents a key level that the market is expected to respect. It serves as both a support and resistance level, guiding traders on when to enter or exit trades based on the market's interaction with this level.
What is the final advice given to traders in the video script?
-The final advice given to traders is to watch other videos in the channel for further education, to practice the strategy, and to perform their own backtesting. It is emphasized that understanding and internalizing the strategy is crucial for success in trading the NASDAQ and US100 markets.
Outlines
📈 Introduction to NASDAQ Trading Strategy
The speaker, Patrick, introduces a trading strategy focused on the NASDAQ. He emphasizes the importance of understanding the market's background information and identifies the Sydney session as the starting point for NASDAQ trading. Patrick explains the use of an indicator to visualize trading sessions and sets specific parameters for it. He reveals a key secret: NASDAQ has a 'backbone' level that it consistently respects, which traders should use to predict price movements. Patrick advocates for self-belief and promises that by the end of the video, traders will have a better understanding of the strategy and their own trading potential.
📊 Analyzing NASDAQ's Price Movements and Risk Management
Patrick continues to dissect NASDAQ's price movements, highlighting the importance of observing the market's behavior during different trading sessions, particularly the overlap between New York and London sessions. He warns new traders about the volatility during these periods and advises on strategic entry and exit points for trades. Patrick also touches on the concept of risk management, emphasizing the need for caution and the importance of not chasing risky trades. He encourages viewers to learn from examples and to conduct their own backtesting to internalize the trading strategy.
🚀 Mastering NASDAQ Trading Through Examples and Tips
In the final paragraph, Patrick provides more examples to solidify the understanding of the NASDAQ trading strategy. He explains how to identify key levels and how to place buy and sell trades based on these levels. Patrick reiterates the significance of the 'backbone' level and offers tips on how to handle situations where the price crosses this level. He concludes by stressing the importance of risk management, suggesting strategies for taking profits and minimizing losses. Patrick ends the video by encouraging viewers to watch more content and inviting new subscribers to the channel.
Mindmap
Keywords
💡NASDAQ
💡Forex Market
💡Trading Strategy
💡Session by Lux Algo
💡Backbone
💡Gap
💡Risk Management
💡Candlestick
💡Buy and Sell Trades
💡London and New York Sessions
Highlights
The NASDAQ has a starting point at the very beginning of the Sydney session.
An ending point for NASDAQ is at the very end of the New York session, often marked by a gap.
The backbone of NASDAQ is a key level that it respects 100%, identified by highlighting the first candle of the Sydney session and extending it to the end of the New York session.
NASDAQ is likely to bounce when it approaches or tests its backbone, presenting potential trading opportunities.
If NASDAQ manages to break through its backbone and retests it immediately, it might indicate a potential drop, suggesting a sell.
During the New York session, especially where it overlaps with the London session, trading can be volatile and is advised to be approached with caution.
The strategy emphasizes the importance of understanding and identifying the starting and ending points of NASDAQ sessions for successful trading.
Risk management is crucial; one should not enter with a high risk as even small movements in the opposite direction can lead to significant losses.
Backtesting is recommended to internalize the strategy and make it one's own, enhancing its effectiveness.
When trading NASDAQ, it is advised to start with a few trades and move the stop loss to entry once a profit is made to secure gains.
The video provides multiple examples to familiarize viewers with the strategy and its application.
The presenter shares a personal anecdote of entering a buy trade today based on the strategy, emphasizing its practical use.
The strategy is presented as easy to understand and apply, with a focus on recognizing patterns and managing risk effectively.
The video encourages viewers to subscribe and watch other content for a comprehensive understanding of the trading strategies.