Stock, Option and Futures Trading
NQ 76% Square
A few days back we were looking at the 70by70 square. The number 70 is not all that important but any number with a square makes the number it is squaring more important. The best squares come on 50%, 61% and 78%.
Right now the NQ have a 76% square on the 150 minute chart. If you look back the prior high on 9/20 was very close to 76% as well.
A square is time and price. For time we are just counting bars because the bars themselves represent time. The price is calculated with the Fib retrace.
Time by itself can be valuable just like price by itself can be powerful. When they both line up it can make both the time and price more meaningful.
With any pattern the pattern can fail. But seeing how we are at a resistance square it answers the question why the market is going sideways.
If the markets stay up here it means the market is building strength at resistance and there is a chance we go through it and squeeze to the upside. The odds say we go down and retrace the last wave.
To go long here you would be betting the higher time frame kicks in from right here which is a lower odds bet. The trend is up the question is where is the best entry. To go long here we would say it is aggressive because the stops would be larger then entering inside of a correction.
Either way we will wait and see which way we break out of the sideways range before getting too aggressive in either direction.