Nasdaq peaked at 4800 in year 2000 and plunged 83% from it’s high. That was year 2000. That was 16 years ago.
16 years later, Nasdaq is back to the Tech Bubble high established in Year 2000. I think this is something we need to take note. History provides a reference but not necessarily will repeat. However, historical reference is very important for all price action trading. For Tflow® it is even more important, because we added time as another component to spot possible explosive movement.
Do note that I’m using charts from my broker Axitrader. Since Nasdaq available is a CFD product, the price listed in my charts will be different from other brokers. If you do wish to use my charts and price levels, do your own adjustment (not that adjustment will not be 100% accurate as components will be different across different Nasdaq CFD). Another way is to use the same broker feed. Axitrader is having a promotion with TerraSeeds to refund $100 of trading losses. With the links below, they will also refund wire transfer fee.
Nasdaq near to Tech Bubble high in Year 2000
From chart above, you could see Nasdaq near to year 2000 high. Even though after 16 years, some stocks might have exited Nasdaq, being replaced by other probably better performing stock, historical prices still provide a very important price reference here.
We can’t deny that Nasdaq did stall near to this price. Price has been consolidating for 5 months from it’s recent high.
Nasdaq in year 2000 prior to it’s 83% fall from high
Before Nasdaq’s crash in Year 2000, we can see a typical Tflow price pattern. This pattern consolidated for 6 months before we see the typical trigger from Tflow® to go short.
As a guide, for explosive pattern, Tflow® measures into time duration of each 1234 pattern it traded into.
A look into Nasdaq in Year 2016
From high, Nasdaq is mapping a 5 month consolidation pattern. This is one reason why it caught my eyes. A 5 month consolidation don’t mean anything, but a 5 month consolidation pattern near to a historical high means a lot.
Nasdaq in multiple timeframe
Analysing across different timeframe is every Tflow students’ strength. In the weekly chart, we see a possible Head and Shoulder pattern. This pattern is a reversal bearish pattern. The typical method is to sell upon the close of a head and shoulder neckline, but that’s not how we traded to get maximum profit! We short at the top of the right shoulder.
Binni G+ private post on 19 April on Nasdaq – 7 days later, Nasdaq plunged 100 points from her posting
I talked about Nasdaq in my classes as well as this post in G+.
Price moved down, triggered the downside price of 4420. Probably Apple earnings triggered this drop, but there are signs that Nasdaq is weak.
— TerraSeeds FX Tflow® (@terraseeds) April 27, 2016
Buy low sell high – Tflow® key idea to make money
Now price has broken key support levels, I’m looking to see 4450-60 establishing as a key resistance zone for some opportunities.
Do note that the above price is base on my broker, and I am shorting nasdaq using CFD (a market make product). Price will be different.
If you do wish to use my charts and price levels, do your own adjustment (not that adjustment will not be 100% accurate as components will be different across different Nasdaq CFD). Another way is to use the same broker feed. Axitrader is having a promotion with TerraSeeds to refund $100 of trading losses. With the links below, they will also refund wire transfer fee.