In today's trading session, I focused on the critical role of the daily chart in day trading, particularly when dealing with the Nasdaq's QQQ index. The daily chart is invaluable for identifying support and resistance levels, which are essential for planning trades. By marking these levels before the market opens, I can anticipate potential market reactions and plan my entries and exits with greater confidence. For instance, a dip below a support level often signals a short opportunity, while nearing resistance might suggest a long entry.
Quick trades are crucial; I enter as the market reacts to these levels, capturing moves and exiting swiftly to manage risk. Larger trades rely on recognizing recurring patterns, or "fingerprints," on the daily chart, which helps anticipate significant moves. This method requires patience and confidence in the pattern's reliability. Understanding market manipulation is also vital. Genuine moves need volume; without it, breakouts are often traps. Always confirm moves with volume to avoid false signals.
Continuous learning and disciplined execution are key. Practice identifying levels, recognize patterns, and confirm moves with volume. Invest in education and review past trades to improve.