The markets gapped down big and eventually started heading up. The NQ had a great Value Area play, and the ES gave us another winner as well. We barely got stopped out of the second half of that by a tick before it went much further. See ES and NQ below.
Net ticks: +6 ticks.
As usual, let’s start by taking a look at the ES and NQ with our market directional lines, VWAP, and Comber on the 5-minute chart from today’s session:
ES:
Triggered long at A at 1953.25, hit first target for 6 ticks, raised stop twice and it stopped at 1954.75 at B by a tick before moving higher:
NQ:
Just a reminder that we use half points for ticks on the NQ and not the quarter point measurement that the exchanges switched to in recent years. This allows us to use 6 ticks as a key target as we do on the other contracts. It also keeps the value of a tick at $10, closer to the value of a tick on the other contracts.
A great Value Area setup triggered at A and crossed the Value Area to the gap fill at B:
