Nasdaq Day Trade Setup | Forexlive

Nasdaq 100 Futures (NQ): Structured Intraday Trade Setup

Nasdaq Price Coming Close to the Possible Fill (Long):

The Nasdaq 100 E-mini Futures (NQ) are currently trading at approximately 21,913, setting the stage for an intraday buying opportunity, contingent on precise entry conditions.

Trade Entry and Risk Management:

Traders eyeing today’s session can consider a potential long position at the price level of 21,908, slightly below current trading levels, using a limit order to ensure precise execution.

• Entry Price (Long): 21,908

• Stop Loss Level: 21,891

• Risk Per Trade: 17 points ($340 profit at $20 per point in NQ, Nasdaq Emini Contracts, and $34 profit at $2 per point at MNQ, Nasdaq Micro Contracts)

Given the tight risk control, this trade setup aims to offer an attractive risk-to-reward scenario.

Profit Target Strategy:

To manage profits effectively, traders can consider dividing exits into three distinct profit targets:

• Profit Target 1: 21,968

• Profit Target 2: 22,006

• Profit Target 3: 22,031

The strategy allows traders to capitalize incrementally as the market potentially moves upward.

Profit and Risk Analysis:

On average, if all profit targets are filled, the trade would yield:

• Average Exit Price: 22,002

• Average Profit: 94 points ($1,880 profit at $20 per point in NQ, Nasdaq Emini Contracts, and $188 profit at $2 per point at MNQ, Nasdaq Micro Contracts)

This translates into an attractive approximate reward vs. risk ratio of apx 5.5 (potential reward is 94 points vs possible loss of 17 points, and 94 is 5.5 times 17 or in other words, potential reward is $1,880 vs possible loss of $340 at NQ), indicating a highly favorable setup.

Nasdaq Trade Management Orientation:

Traders can consider raising their stop-loss to the entry level upon reaching the second of three targets. Some may choose to raise their stop to entry even after reaching the first target, depending on their individual trading strategy.

Prices presented are not random and are rooted in thorough analysis according to the TradeCompass methodology, incorporating volume profile, VWAP, liquidity pools, and a responsible, attractive reward-to-risk application. Stay tuned for updates, and also for other trade ideas, regardless of whether this trade idea realizes a profit or loss.

Nasdaq Trade Scenario Calculations:

• Scenario 1 (stop hit first): Loss = $340

• Scenario 2 (1st target hit, then stop): Profit of 60 points ($1,200) minus 34 points loss on remaining two contracts (17 points each) = Net profit of $520

• Scenario 3 (1st and 2nd targets hit, then stop): Profit of 60 points ($1,200) + 98 points ($1,960) minus 17 points loss on remaining contract ($340) = Net profit of $2,820

• Scenario 4 (all targets hit): Total profit = $3,320 (60 points + 98 points + 123 points = 281 points × $20 per point)

Remember not to leave any orders open once the trade plan ends, whether stopped out or all targets are reache

Important Considerations for Nasdaq Day Traders:

• Adjust your stop-loss and targets according to your individual risk tolerance and trading strategy.

• Remember, this is a structured plan, not a guaranteed outcome. Market conditions can change rapidly, and disciplined risk management is crucial.

• Return to this page for possible updates within the comments section. We typically provide those after publishing the trade idea.

Disclaimer:

This article is for educational purposes only and is not financial advice. Trading futures involves substantial risk and may not be suitable for all investors. Always trade responsibly and at your own risk.

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