A trading strategy using two NASDAQ price levels 80 points apart. Enter when price taps the upper level and bounces up, targeting quick 15-30 point gains. Scale out at preset profit levels, move your stop to break-even, and exit fully if you hit 100 points profit.
My strategy is called the 80/20 strategy, and it's based off the NASDAQ. So let's say it's trading at 25,680. I would be looking at these 2 numbers, 80, and if it was trading at 25,620, the New York open, and we're going into 25,680. Let's say it's opening like this. So you have a candle here, you have a candle here, you have a candle here, and it's going into 680. Now I'm looking to see if it taps 680, it taps it, and I see an Instant reaction higher. I see that this level is being respected, 680, 620, and there's levels in between, but the big ones are going to be 80 and 20. That means that I can get in and I don't look for 100, 200, 300 points. I'm just looking to get 15, 30 points. So as soon as this is tapped and I see that it's giving a reaction, I'll take that entry long. 695. Okay. I take one contract off here. 703. I take another contract off here and I see that it's slowing down. Okay. I'll set my stop to break even back here at 680. If I can get 100 points, out of it, great. If not, it heads back down to break even, I get stopped out, and that trade is done.
