NASDAQ / NQ - Inverse Head and Shoulders breakout buy signal

Atualizado
Overnight the NASDAQ futures formed an inverse head and shoulders pattern following Trumps tariff threats. This pattern is showing that buying has quickly entered back into the market and we may see a large short squeeze with a quick pop in price. The price target based on the pattern and overhead resistance is around 7430. As with all patterns nothing is guaranteed so if you enter this position always protect yourself with stoplosses or use defined risk trades like the short put vertical spread.
Trade ativo
Entered trade with a short put vertical spread, long put @ 165.5 & short put @ 181, 16 DTE. Opted for a lower expiration because I am going for a near future pop in price, so looking for higher gamma to get directional on my deltas quicker.
Nota
BTW, the above trade was made on QQQ, but still using futures as my go-to for price action charting
Nota
Hang in there folks, It just takes some intestinal fortitude to hold on sometimes. haha.
Trade fechado manualmente
The right arm was breached overnight which invalidated the pattern so I closed for a very small loss, less than 1/10th % of my overall trading account.
Candlestick AnalysisHead and ShouldersindiciesInverse Head and ShouldersnasdaqNQpriceactionSupport and Resistance

Dad of 5 • Dev • Candlestick Whisperer • Crypto class of 2019
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