Hi Traders! NASDAQ short term forecast follow up and update is here. On September 4th I shared this “NASDAQ Short Term Forecast And Technical Analysis” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club. Spoiler alert – free memberships are available!
Explore My Free Mentorship Program
As an Internationally Certified Financial Technician (CFTe, IFTA) and former private capital hedge fund trader, I have successfully mentored numerous students who are now thriving in the trading world. Students who learned with me, are now full-time traders, work in the trading industry, run their own capital firms or are fully funded traders by private companies, develop automated trading solutions and manage others’ capitals. I am a very proud mentor and I am proud of the success stories I’ve helped create, and for a limited time, I’m offering my mentorship program for free through a partnership with Eight Cap broker. Join Eight Cap, become an active trader, and choose the offer that suits you best –
For more details, visit: Home Trader Club Mentorship Program
I’m excited to work with you and help you reach your desired level of success!
My Idea
On the H1 chart, we have a strong resistance zone that has formed and the price which was moving higher reached this strong resistance zone respected it, moved lower from this zone. We also had a bearish divergence that has formed between the first high that has formed at 19645.5 and the second high that has formed at 19653.1 based on the MACD indicator, we may consider this as evidence of bearish pressure. The price then moved lower and broke below the most recent uptrend line, which we may consider as another evidence of bearish pressure. In addition to this, the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So based on all these my view is bearish here and I expect the price to continue lower further after pullbacks until the strong resistance zone holds.
NASDAQ H1(1 Hour) Chart Current Scenario
In NASDAQ on the H1 chart based on the above-mentioned analysis until the strong resistance zone holds I was expecting the price to move lower further in the short term after pullbacks. The price moved exactly as I expected it to here. After the most recent uptrend line breakout, the pullback that I was looking for happened and then the price moved lower further and delivered a nice move to the downside!
On the M15 chart, the market provided us with facts supporting the bearish view. The price which was moving inside a range, broke below the bottom of it and retested the breakout. We may consider this as a fact provided by the market supporting the bearish view and also there we no signs opposing this bearish view. Then as you can see in the image below how the price moved lower further and provided a nice move to the downside!
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bearish view here, and there were no signs against it. When the facts do happen as we expected, you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us with the majority of the time, it’s our obligation as traders to be able to listen to these things that the market tells us, and we should try to make the right actions accordingly.
For similar trade ideas and much more I invite you to
Also, you can get one of our strategies free of charge. You will find all the details here
Download our best forex indicators here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
