NASDAQ futures can move quickly, particularly around the market open. Rather than trying to predict every turn, one approach is to let price action establish direction and then look for trading opportunities that agree with that movement.
In this trading session, we’re looking at the Micro E-mini Nasdaq-100 (MNQ) and several price-action signals generated by the DayTradeToWin Blueprint and Trade Scalper methods.
One of the setups uses a 25-point target, but the size of the target isn’t the most important lesson.
What’s more important is understanding why the trade is being considered in the first place.
Be Careful Trading Immediately After the Market Opens
One of the first things you’ll notice in this session is a significant move shortly after the opening bell.
Large candles and quick reversals are common around the market open. Price can move sharply in one direction and then reverse just as quickly.
That’s one reason we generally prefer to allow the market some time to develop before committing to a trade.
A large opening candle can also establish an important price area. Its high and low may become areas traders watch as potential support or resistance as the session develops.
Instead of reacting to every initial move, give price action an opportunity to provide more information.
Don’t Fight an Established Market Direction
Another important concept demonstrated in this session is trading with price movement rather than continually attempting to call a market top or bottom.
When price continues making progress in one direction and multiple setups begin appearing in that same direction, there’s usually little reason to fight it simply because the market has already moved.
That doesn’t mean blindly entering a trade.
It means looking for appropriate setups that agree with the price action you’re already seeing.
A pullback, continuation pattern or another qualified setup may provide an opportunity without requiring you to predict exactly where the market will reverse.
Four NASDAQ Signals Pointing in the Same Direction
During this particular MNQ session, multiple Blueprint signals appear in the same direction.
Eventually, we have four signals supporting the same directional bias.
That’s useful information.
A single signal can provide a trading opportunity, but multiple qualified signals agreeing with one another can give a trader additional information about the prevailing market environment.
This is where combining trading methods can become particularly useful.
Combining Blueprint and Trade Scalper Signals
At one point in the session, the Trade Scalper produces a signal while the Blueprint is also supporting the same direction.
Instead of having one methodology telling us one thing and another telling us the opposite, the methods are agreeing.
This is a form of trade confirmation.
It doesn’t guarantee that a trade will be profitable. Nothing does.
But if you already use multiple trading methods, one useful approach is to determine whether they’re confirming or conflicting with one another.
For example, if Blueprint indicates one direction while Trade Scalper strongly indicates the opposite direction, that conflict might be a reason to wait.
Sometimes the best trading decision is simply not taking the trade.
Why We Don’t Fill the Chart With Indicators
At DayTradeToWin, our primary emphasis is price action.
We don’t believe a trader needs a chart covered with moving averages, MACD, momentum oscillators, crossovers and numerous other indicators simultaneously.
Too much information can actually make decision-making harder.
Even when combining trading methods, consider keeping the chart relatively simple.
Three or four useful methods that you understand may be considerably easier to interpret than a screen filled with indicators providing conflicting information.
The objective isn’t to create the most complicated chart.
It’s to make better-informed trading decisions.
Using ATR to Determine Targets and Stops
One indicator that can be particularly useful for understanding current market conditions is the Average True Range (ATR).
In this example, we’re using an ATR period of 4.
ATR provides information about the amount of movement currently occurring in the market. That can help when evaluating whether a profit target or stop is reasonable for current volatility.
For example, the 25-point target shown during this NASDAQ session isn’t simply an arbitrary number.
Current market movement is part of the consideration.
When volatility changes, traders may need to reconsider whether they’re asking too much—or too little—from a trade.
Targets Are Only Part of the Trade
It’s easy to focus exclusively on potential profit.
But every trade has two sides:
How much are you attempting to make, and how much are you prepared to risk?
A 25-point target doesn’t automatically make a setup attractive.
The entry location, stop placement, current volatility, price-action structure and overall market direction all matter.
That’s why filtering trades is every bit as important as finding them.
Keep Your NASDAQ Trading Simple
The overall lesson from this trading session is straightforward:
Don’t overcomplicate the chart.
Let price action provide information about market direction. Look for qualified setups. Use additional methods for confirmation when appropriate. Pay attention to volatility when determining targets and stops.
And perhaps most importantly, don’t assume you need to trade every signal that appears.
There will always be another opportunity.
Watch the NASDAQ Trading Video
In the video, you’ll be able to see the Blueprint and Trade Scalper signals directly on the MNQ chart, including the 25-point trade examples discussed above. Get a free day trade to win trial
Frequently Asked Questions
MNQ is the Micro E-mini Nasdaq-100 futures contract. It provides exposure to the Nasdaq-100 at a smaller contract size than the standard E-mini Nasdaq-100 (NQ) futures contract.
Price action trading focuses primarily on the movement and behavior of price rather than depending exclusively on traditional technical indicators. Traders may evaluate trends, ranges, volatility, support and resistance, pullbacks and other market structures.
The opening period can experience increased volatility, larger candles and rapid reversals. Waiting can provide additional price information before making a trading decision.
Multiple methods agreeing on market direction can provide additional confirmation. Conversely, conflicting signals can be a reason to remain patient and wait for a clearer opportunity.
Average True Range measures market volatility. ATR can help traders evaluate whether potential targets and stops are reasonable relative to recent price movement.
A shorter ATR period such as ATR 4 responds relatively quickly to recent changes in volatility. DayTradeToWin uses it as one tool for evaluating current market movement and potential target and stop distances.
No. Every trading setup can result in a loss. Signals should be considered within the context of risk management, market conditions and the trader’s individual trading plan.
About DayTradeToWin
DayTradeToWin provides price-action trading education, methods and software designed for futures and active traders.
Our trading tools include methods such as Blueprint, Trade Scalper, Sonic, Atlas Line, Roadmap and other price-action approaches designed to help traders identify and evaluate market opportunities.
DayTradeToWin software is available for platforms including NinjaTrader and TradingView.
Visit DayTradeToWin.com to learn more or create a free member account.
Risk Disclaimer
Trading futures, stocks, forex, cryptocurrencies and other financial instruments involves substantial risk of loss and is not suitable for everyone. Leverage can amplify both gains and losses. The information and examples presented here are for educational purposes only and should not be considered financial, investment or trading advice. No trading method, software or signal can guarantee profits. Past or hypothetical performance is not indicative of future results.
John Paul is the founder of DayTradeToWin, a trading education and software platform established in 2008 with thousands of members worldwide. He specializes in price action-based futures trading strategies and structured market analysis.
DayTradeToWin provides trading education, indicators, and software tools designed to help traders apply disciplined, rule-based price action decision-making across global futures markets.
John Paul is the creator of several trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, used by traders to identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC).
Official website: https://daytradetowin.com
