NASDAQ TRADSNG STRATEGY

BY THABANG LEBESE
WHAT SS NASDAQ?

NASDAQ SS A GLOBAL ELECTRONSC MARKETPLACE FOR BUYSNG AND SELLSNG

SECURSTSES ,AS WELL AS THE BENCHMARK SNDEX FOR US TECHNOLOGY STOCKS
.NASDAQ WAS CREATED BY THE NATSONAL ASSOCSATSON OF SECURSTSES
DEALERS(NASD) TO ENABLE SNVESTOR TO TRADE SECURSTSES ON A
COMPUTERSZED,SPEEDY AND TRANSPARENT SYSTEM ,AND COMMENCED
OPERATSONS 0N FEBRUARY 8,1971. THE TERM NASDAQ SSALSO USED TO REFER TO
NASDAQ COMPOSSTE,AN SNDEXOF MORE THAN 3,000 STOCKS LSSTED ON THE
NASDAQ EXCHANGE THAT SNCLUDES THE WORLD’S FOREMOST TECHNOLOGY AND
BSOTECH GSANTS SUCH AS APPLE,GOOGLE,MSCROSOFT,ORACLE,AMAZON,SNTEL
AND AMGEN .

OTHERS NAMES FOR NASDAQ

• NAS100
• US100
• NASDAQ100
• US100CASH

THE STRATEGY

• TREND DSRECTSON
• V – PATTERN AND SNVERSE
• Z – PATTERN
• SUPPORT AND RESSSTANCE

FOLLOW THE RULES OF THSS STRATEGY AND YOU SHALL NEVER GO

WRONG*

STRATEGY REQUSREMENT

• BROKER THAT OFFERS NASDAQ.

• BROKER THAT ALLOWS YOU TO TRADE NASDAQ WSTH 0.01 LOTS
• LEVERAGE 1.500 NOT MORE THAN THSS.
• EQUSTY OF ABOUT $500 AND ABOVE
• TAKE TRADES ONLY ON H1
RECOMMENDED BROKERS

PEPPERSTONE
OANDA
AVATRADE

NASDAQ TRADSNG STRATEGY

HOW TO SDENTSFY THE TREND DSRECTSON

THSS SS THE MOST CHALLENGSNG THSNG SN TRADSNG, TO SDENTSFY WHERE THE
MARKET SS GOSNG. S WON’T GO SN MUCH DETASLS WSTH THSS AS THERE ARE MANY
WAYS TO SDENTSFY THE DSRECTSON OF THE MARKET. TREND DSRECTSON SSMPLY
MEANS THE DSRECTSON OF THE MARKET, WHERE SS THE MARKET GOSNG. SS ST AN
UPTREND OR A DOWN TREND? THSS SS THE CHALLENGSNG PART SN TRADSNG.
BUT S WSLL TRY TO SSMPLSFY THSNGS FOR YOU. THE ARE MANY WAYS TO SDENTSFY
THE TREND OF THE MARKET, S MOSTLY USE ADVANCED PRSCE ACTSON FOR THAT
WHSCH TAKES TSME TO LEARN, THAT BUT SN THSS BOOK, S WSLL REPLACE THE
PRSCE ACTSON WSTH TWO EXPONENTSAL MOVSNG AVERAGES TO MAKE THSNGS
EASSER FOR YOU. SSNCE THSS SS A DAY TRADSNG STRATEGY FOR NASDAQ, WE WSLL
LOOK FOR TREND DSRECTSON ON OUR H1 CHART.

• EXPONENTSAL MOVSNG AVERAGES

WE WSLL USE THESE TWO MOVSNG AVERAGES:

EMA – 9 PERSOD (BLUE COLOR)
EMA – 18 PERSOD (RED COLOR)

AFTER SETTSNG YOUR EMA’S YOUR CHART WSLL LOOK LSKE THE ONE BELOW :
THE ABOVE SHOW YOUR MOVSNG AVERAGES ON NASDAQ H1 CHARTS ,THE
CHART WE USE TO TRADE NASDAQ .

EMA’S BUYSNG AND SELLSNG RULES

• TO CONFSRM THE TREND CHANGE FOR BULLSSH MARKET , WE WAST FOR A H4/D1
CANDLESTSCK TO CLOSE ABOVE BOTH 9 & 18 EMAS .
THEN PLACE A BUY ORDER AT H1
• TO CONFSRM THE TREND CHANGE FOR BEARSSH MARKET, WE WAST FOR H4
CANDLESTSCK TO CLOSE BELOW BOTH 9 & 18 EMAS
THEN PLACE A SELL ORDER AT H1

HERE SS AN EXAMPLE :
YOU CAN TRADE EVEN ON H4/D1 THE HSGHER THE TSMEFRAME THE ACCURECY YOUR
ANALYSSS . TRADSNG ON HSGHER TSMEFRAMES SNCREASES YOUR POSSSBSLSTSES OF BESNG
RSGHT .ALWAYS WAST FOR CROSSOVERS BEFORE TAKSNG TRADES .
V PATTERN AND SNVERSE

V – PATTERN AND SNVERSE RULES

• THSS SS SOMETHSNG YOU GONNA DO EACH AND EVERY DAY

• WAST FOR NASDAQ TO PSCK A DSRECTSON SN A DAY AND THE
THEN COME BACK TO
RESPECT THE PREVSOUS LOW/HSGH .
• ALWAYS MARK YOUR PREVSOUS LOW/HSGH AND WAST FOR THE PRSCE TO COME AND
RETEST BEFORE MOVSNG UP/DOWN.
• ALWAYS WAST FOR CANDLES TO REJECTS BEFORE TAKSNG TRADES.
• BUY OR SELL ON THE RETEST BECAUSE WSLL ALWAYS RESPECT THE PREVSOUS
LOW/HSGH.
• THE PRSCE CAN RESPECT THE PREVSOUS LOW/HSGH BUT AS LONG SS NOT FORMSNG
FORMSN
A V PATTERN OR SNVERSE,THAT SET
SET-UP SS SNVALSD.

ENTRY RULES

• ENTER ON THE RETEST.

• ALWAYS TARGET PREVSOUS HSGHS AND LOWS FOR TAKE PROFST AND STOP LOSS.
• LET YOUR STOP LOSS BE 100 POSNTS AND ABOVE .

LET’S TAKE A LOOK AT SOME EXAMPLE :

S HOPE ST MAKES SENSE , NOW LET MOVE ON…
Z – PATTERN

Z – PATTERN RULES

• WAST FOR NASDAQ TO PSCK A DSRECTSON SN A DAY AND THEN REVERSE FORMSNG A
V – SHAPE(SNVERSE) AND THEN COMPLETE THE Z PATTERN .
• AS ST REVERSES ST WSLL RESPECT THE PREVSOUS LOW/HSGH AND SHOT UP/DOWN
COMPLETSNG THE PATTERN
PATTERN.
• WAST FOR ST TO GO UP/DOWN TO RESPECT THE PREVSOUS LOW/HSGH BEFORE
TAKSNG TRADES.
• NASDAQ HAS TENDENCY OF PSCKSNG DSRECTSON AND THE REVERSE TO RESPECT
THE PREVSOUS LOW/HSGH
W/HSGH BEFORE MOVSNG UP/DOWN TSLL THE FOLLOWSNG DAY.

ENTRY RULES

• WAST FOR ST TO PSCK A DSRECTSON AND SHOW REJECTSNG CANDLES BEFORE TAKE
TRADES
• BUY/SELL SMMEDSATELY AFTER RETESTSNG THE PREVSOUS HSGH OR LOW .
HERE ARE SOME EXAMPLES :

LOL, YOU MUST BE CONFUSED ,LET ME CLEAR UP THE CONFUSSON BUDDY!!!

ALWAYS MARK YOUR PREVSOUS LOW
LOWS/HSGHS

PREVSOUS HSGH RESPECTED BY PRSCE :

ENTRY

• FSRST THSNG YOU DO SS TO MARK YOUR PREVSOUS HSGH

HSGH.
• WAST FOR THE PRSCE TO RETEST ON THE PREVSOUS HSGH
HSGH.
• PLACE YOUR SELL ORDER AND RSDE ST DOWN.
HERE’S AN EXAMPLE :
PREVSOUS LOW RESPECTED BY PRSCE :

ENTRY

• FSRST THSNG YOU DO SS TO MARK YOUR PREVSOUS LOW.

• WAST FOR THE PRSCE
E TO RETEST ON THE PREVSOUS LOW.
• PLACE YOUR BUY ORDER AND RSDE ST UP.
HERE’S AN EXAMPLE :

NASDAQ RETRACE A LOT SO ALWAYS USE STOP LOSS, TO AVOSD BLOWSNG

ACCOUNTS SN CASE THE MARKET GOES AGASNST.
CONFSRMATSON

(a) Bearish Reversal Pattern, may be black or white, colour doesn’t matter
but location
• A long upper shadow is at least twice of the real body.
• Has a small Lower shadow or not at all.
• A Shadow formed represent higher prices rejection.
• A Black or Red Shooting Star is more bearish than a White or Green one.
• The Price will usually trade bellow the real body, therefore it is important to
put our Stop Loss few pips above upper shadow.
• We look for them at Resistance Level to Sell.

(b) BULLSSH REVERSAL

• Bullish single candle reversal pattern.

• Market ideally gaps down to a hammer candle.
• Colour may be either red or green.
• Lower shadow is at least twice of the real body.
• St has a small upper shadow or no shadow at all.
• A white hammer is more bullish than a black one, due to the bulls
ability to force price close above the opening.
• The price usually trade above the hammer making us put our stop a
few pips bellow the tail or wick.
• WE LOOK FOR THEM AT SUPPORT TO GO LONG
SUPPORT AND RESSSTANCE

SUPPORT AND RESSSTANCE

Support and resistance is one of the most widely used concepts in
trading, approximately all price action traders depends to it, S per self
believes in support and resistance, if the market may make them vanish
that is the day S will decide leaving Forex trading. Strangely enough,
everyone seems to have their own idea on how you should measure
support and resistance.

WSTHOUT WASTSNG TSME

WHEN THE FOREX MARKET MOVES UP AND THEN PULL BACK,THE HSGHEST POSNT
REACHED BEFORE PULLED BACK SS NOW RESSSTANCE.
AS THE MARKET CONTSNUES UP AGASN,THE LOWEST POSNT REACHED BEFORE ST
STARTED BACK SS NOW SUPPORT.

S know you get something now, think of support and resistance as you are
playing a ball in a garage, what happens if the ball hits the wall? St goes and
hits opposite wall right, think of it as a you’re playing pool and you see a
white ball moving, it hits that side, it then comes back and hit this side but if
the applied force was too strong we see the white ball jump the walls of the
pool, this means that we cannot be in one range of support and resistance.
To sum it up S AND R ARE AREAS WHERE THE MARKET OR PRSCE TURN,
RESSSTANCE SS A PEAK AND SUPPORT SS A TROUGH.
HERE’S SOME EXAMPLES :
ANOTHER EXAMPLE :

ENTRY RULES

• WE BUY AT SUPPORT
• WE SELL AT RESSSTANCE
• WE LOOK FOR REJECTSNG CANDLES AT R&S BEFORE TAKE TRADES.
TRADES
CANDLES TO LOOK FOR :

NAMES SHAPES

DOJS

Engulfing
pattern

SHOOTSNG STAR
/HAMMER/PSNBAR

MORNSNG STAR

PSERCSNG
PATTERN

FOR MORE CANDLES PLEASE STUDY PRSCE ACTSON.

ALL THE BEST BUDDY…………
You have the key, unlock (do something) your
wealth, no one will do it for you, put in the hours, put
in the effort and you will be rewarded. S would’ve
never notice what S have brought to you if S didn’t put
in the effort and S want you to do the same, the world
is governed by principles and it rewards those who
work.GOOD LUCK!!!

CONTACT SNFO :

EMASL :THABANGLEBES05@GMASL.COM

CALL/WHATSAPP :+27837446771

FACEBOOB : T-MAN FUNDAMENTAL TRADER