TL;DR: Trade Nasdaq (NQ) during the New York session using a multi-timeframe method: mark higher-timeframe levels (Year/Quarter/Month/Week/Day highs & lows). After NY open, use 5–15min charts to find clean tests/rejections of those levels and enter on lower-TF price-action confirmation. Place SL beyond the relevant swing or rejection wick; scale TP in fixed increments (e.g., every 50 points up to the next major level). Prefer SL validated by candle close beyond the SL level to reduce intrabar noise.
Table of Contents
1. Introduction
A level-based, multi-timeframe intraday approach: establish structural levels on long timeframes, then trade retests/rejections on lower timeframes during the NY session. The method pairs “where price cares” with tight intraday execution.
2. Strategy overview
- Instrument: Nasdaq (NQ), spot CFD or futures
- Higher TF levels: Yearly / Quarterly / Monthly / Weekly / Daily highs & lows
- Execution TFs: 5-minute and 15-minute charts
- Session: New York session (first hours preferred)
- Core concept: Enter at retests/rejections of major levels with lower-TF confirmation.
3. Setup
- Mark Y/Q/M/W/D highs & lows as horizontal levels (persist on chart).
- Use H4/H1 to determine daily bias.
- Open 5-min and 15-min charts for retest monitoring.
- Optional: 50 EMA on M5 as short-term trend filter; tick/volume for confirmation.
4. Trading rules
4.1 Filter / Bias
- Favor trades that align with higher-timeframe bias (H4/H1). If bias is neutral, use stricter confirmation and reduced risk.
4.2 Signal
- Valid signal = retest of a major level + lower-TF rejection (pin bar, wick rejection, or quick consolidation breakout).
4.3 Entry
- Enter on confirmed rejection via market or pending breakout order a few ticks beyond the rejection high/low.
4.4 Stop-loss
- Place SL beyond the local swing or rejection wick. Consider SL validated after candle close beyond the SL level.
4.5 Take-profit & Trade Management
- Scale-out targets (e.g., partial at ~50 points, rest to next Daily/Weekly level).
- Alternatively, use fixed R:R legs (e.g., close portion at 1:1 and trail remainder to 2:1).
4.6 Invalidation
- Ignore signals on aggressive level breaks without retest, during major news, or when institutional volume is absent.
5. Position sizing & Risk Management
- Risk per trade: 0.5%–1% of equity.
- Lot sizing according to SL distance.
- Limit number of trades per session and stop trading on excessive drawdown.
6. Backtest & Validation
- Backtest multiple months of NY session 5–15m data with realistic spreads/slippage.
- Log entries, SLs, TPs, and compute expectancy, win rate, and max drawdown.
7. When NOT to trade
- Around high-impact news.
- On days price slices through levels without interaction.
- During very low liquidity or abnormal spreads.
8. Variations & Optimizations
- Opening-range variation: use first 15–30 minute range breakout/retest as an execution zone.
- Add volume/tick confirmation to filter false retests.
- Use 50 EMA on M5 as alignment filter.
9. Pre-trade checklist
- Y/Q/M/W/D levels mapped and labeled.
- Daily bias checked on H4/H1.
- 5–15m chart shows clear retest + rejection.
- SL, lot size and risk calculated.
- No high-impact news pending.
10. Conclusion
A structured level-based intraday framework for Nasdaq that emphasizes higher-timeframe levels and crisp lower-timeframe execution. Discipline, backtesting, and conservative risk control are required before scaling to live accounts.
11. FAQ
Q: Can I apply the same method to other indices?
A: Yes — but backtest per instrument and adjust point targets (e.g., 50 points is NQ-specific; other instruments require different point sizing).
