NASDAQ Trading Idea

The level 4900 is a place for making decision how we have to trade. Let's think about possible price movements. If the close price of this day is above 4900, we'll have price reversal from the support level with RSI confirmation. MACD histogram will support up movement. At the same time rising MAs with periods 20, 50 and 100 give a signal that up trend begins and we can open long trades. If you wait for rising ADX, you will get additional confirmation of such up movement. If price moves below 4900 and ADX stays below 20, we'll have range market conditions. Short trades will be reasonable.