2

PLAY
MNQ – inside bounce continuation

CATALYST
MNQ failed to breakdown multiple day support, and was bought up extremely aggressively with high volume from 10865

TRADE IDEA
MNQ could touch Premarket highs is buyers keep stepping up

SETUP QUALITY AND VARIABLES
B

MNQ is balanced between 11180 and 10851 after QQQ bounced off** 260** last week. This morning we are unable to lift premarket highs @ 11050 and we sold off to test multiple day support @10870. After I originally tried to go short because I thought we may finally break lower to test 10836, I took my stop and MNQ reversed with huge volume. Going short was honestly a dumb thing to do here and I would have noticed if I had been paying closer to the volume @10am. Price quickly bounced and reclaimed yesterdays HOD (todays premarket lows) and based off the volume I suspected we may quickly revisit todays premarket high of 11050, which is also an important technical level from the past 6 sessions.

PLAN
Flip to long at consolidation under premarket lows, targeting 11050, 75pts. Monitor volume and hold to profit zone. Stop is break below 10956 (breakout candle)

REASONS TO SELL
Stopped out
Volume dries up
Target hit

EXECUTIONS AND PRICE ACTION
Followed plan, sold a bit too early because the tape was slowing and did not want to risk giving back anything after taking my initial loss going short

KEY TAKEAWAYS
• Good technical analysis and attention to price action allowed for me to confidently take this trade and wipe my loss out, but I was too scared to trade with usual size. I typically will size down on my next trade if it is not a A setup and I have just taken a loss.
• The entire bounce from LOD @10865 could have been captured with larger size and made my week if I had been paying closer attention.
• The original loss was just dumb… I rushed in and did not pay attention to the volume. Do better.