A Fibonacci Downside Setup In NQ
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On Tuesday we put this zone out in NQ futures as a sell zone that needed a trigger in the Fibonacci Setups (sms alert) area of the site. The zone came in at the 19691-19702 area. Note that this zone actually got retested in the overnight session and both times the resistance held. The first time the high was made at 19694.25, and the second time the high was made at 19691.
From the original high, we saw a drop of 415 NQ points without any real pain of the market going the other way. Our initial stop would have been either above the high or above the cluster, whichever of those you choose for your plan. We can use a short-term trigger against a zone like this. That would be a 1 - 5 minute chart using the 8/34 ema crossover to the downside.
You can also use the 15- or 30-min chart 8/34 ema crossover trigger for a trade to keep overnight.
