After the 4PM open, NQ drifts higher in a slow, corrective grind toward 24,220 (PDC). Small-bodied candles, overlapping wicks — this is a liquidity draw, not impulsive buying.
A candle wicks above 24,220 but closes below it. The body caps at or below PDC — this is the key signal. One wick through is normal; two+ closes above invalidates.
Next candle is a full-bodied bearish candle that closes below the prior candle's low. This is your displacement — it leaves a Fair Value Gap (FVG) behind with range expansion.
Enter short on the close of the displacement candle or on a minor pullback into the FVG. Stop loss at 24,250 (30pts). Target: 24,130 initial, then 24,080.
After rejecting from higher levels, NQ sells off toward the Sunday low at 24,106. The move should be controlled, not panicky — normal-sized candles, not massive reds back-to-back.
A candle sweeps below 24,106 into 24,080 — smart money grabbing sell-side liquidity. The sweep should be fast and violent (sharp wick). Speed = reversal. Slow = continuation.
Same or next candle reclaims above 24,106 with a strong bullish body. Low wick reaches 24,080 but body closes well above Sunday low. This is the spring pattern.
Enter long at 24,080 on the sweep, or on the close of the bullish reclaim candle. Stop loss at 24,055 (25pts). Target: 24,160 initial, then 24,220+.
Friday's -2% selloff closed NQ at 24,220. Sunday opened at 24,219 and immediately sold to 24,106 — the market showed its hand. On the 15-minute chart, candle bodies are capping right at 24,220 (the PDC), while wicks reach up to 24,255 but fail to hold. This means 24,220 is the true resistance — enter at the body rejection level, not the wick. The SL at 24,250 sits just above the Sunday high (24,255) — if price breaks and holds above there, the setup is dead.
Price to retrace to 24,220 area. Look for a 15m bearish engulfing or pin bar rejecting off the PDC. Do NOT enter on the first touch — wait for the displacement candle.
Enter short at 24,220 on the close of a displacement candle that rejects the PDC. Candle body must close below 24,200 for confirmation.
Move SL to breakeven at TP1 (24,100). Take 1/3 off at TP1, 1/3 at TP2 (24,000), let the remainder run to TP3 (23,830).
If price closes a 15m candle ABOVE 24,255 (Sunday high), the setup is invalid. Do not re-enter. The SL at 24,250 handles this automatically.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 24,100 | 120 pts | 4.0 : 1 |
| TP2 | 24,000 | 220 pts | 7.3 : 1 |
| TP3 | 23,830 | 390 pts | 13.0 : 1 |
The 38.2% retracement of Friday's selloff (24,720 high to 24,100 low = 620pt range) lands at 24,337. This is the shallow retrace level — where the first wave of institutional shorts re-enter if they missed the initial move down. At 24,340, price has reclaimed the Sunday high (24,255) but is stalling before the deeper OTE. Trapped longs from the Sunday high breakout provide fuel for the reversal back down.
Price must break above the Sunday high (24,255) and push into the 24,340 area. This confirms the retrace is extending — wait for it to arrive, don't chase.
Enter short at 24,340 on a 15m bearish engulfing or rejection wick. Look for volume increasing on the rejection — that's institutions stepping in.
Move SL to breakeven at TP1 (24,220 — back to PDC). Take 1/3 at TP1, 1/3 at TP2 (24,100 — Sunday low), let the runner target TP3 (23,830).
If price closes a 15m candle above 24,370, the 38.2% fib is broken and the retrace is extending deeper to the OTE. Wait for S3 instead.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 24,220 | 120 pts | 4.0 : 1 |
| TP2 | 24,100 | 240 pts | 8.0 : 1 |
| TP3 | 23,830 | 510 pts | 17.0 : 1 |
If the retrace extends deeper, the 50-62% OTE of Friday's selloff (24,720 high to 24,100 low) lands at 24,400-24,470. This is deep premium territory — price would be retracing into the heart of Friday's institutional selling. After a -2% single-day move, any retrace into the OTE is a gift for shorts. Smart money sold aggressively from 24,720 down to 24,100 — they're not going to let price reclaim 50%+ of that move without defending it.
Price must rally significantly from current levels. This is a "if it gets there" setup. Don't force it — wait for the level to come to you.
Enter short at 24,440 on a 15m bearish displacement candle. Look for a sweep above 24,400 that fails and reverses with a strong bearish candle.
Move SL to breakeven at TP1 (24,220). Scale out 1/3 at each TP. Let TP3 runner target 23,830.
If price closes a 15m candle above 24,470, the OTE zone is broken and the setup is dead. Do not average down.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 24,220 | 220 pts | 7.3 : 1 |
| TP2 | 24,000 | 440 pts | 14.7 : 1 |
| TP3 | 23,830 | 610 pts | 20.3 : 1 |
The Sunday low at 24,106 is a clear SSL magnet — sell stops are resting below it from early Sunday longs. On the 15m chart, this level has been tested and respected as support. A sweep below 24,106 into 24,080 grabs that liquidity, then if price reclaims with a bullish displacement candle, that's your long. The entry at 24,080 was refined from 24,010 based on 15m chart analysis — it catches the sweep without requiring an unrealistic 100pt drop to the psych level.
Price must break below the Sunday low (24,106). Don't front-run. Wait for the sweep to happen — the wick below 24,106 into 24,080 area.
Enter long at 24,080 ONLY after seeing a 15m bullish displacement candle that reclaims 24,100. The candle must close above the Sunday low — that confirms the sweep failed.
Move SL to breakeven at TP1 (24,130). Take partial at TP1, more at TP2 (24,220 — back to PDC), let the runner target TP3 (24,440).
If price closes a 15m candle below 24,055, the demand is broken. The sweep has become a break. Do not hold.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 24,130 | 50 pts | 2.0 : 1 |
| TP2 | 24,220 | 140 pts | 5.6 : 1 |
| TP3 | 24,440 | 360 pts | 14.4 : 1 |
If 24,000 psych support breaks, the 23,810-23,860 zone is the next demand. At this point price is 380pts below Friday's close — a full -1.6% extension on top of Friday's -2%. That's a combined 3.5% drawdown in two sessions. Bears get exhausted at these levels. This zone aligns with prior TP targets from last week's setups and represents a measured move completion from Friday's selloff. Structural buyers step in here.
Price must break below 24,000 psych. This setup only activates if L1 fails and 24k breaks. Don't pre-position.
Enter long at 23,840 on a 15m bullish displacement candle. Look for a capitulation wick into the zone followed by a strong green candle reclaiming 23,860.
Move SL to breakeven at TP1 (24,000). First target is reclaiming the psych level. Scale out at each TP.
If price closes a 15m candle below 23,815, the demand zone is broken. Next support is L3 at 23,610.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 24,000 | 160 pts | 6.4 : 1 |
| TP2 | 24,130 | 290 pts | 11.6 : 1 |
| TP3 | 24,320 | 480 pts | 19.2 : 1 |
If the selloff accelerates on Iran escalation or panic selling, the 23,580-23,630 weekly FVG is the last line of defence before the 23,050 key level. Price would be 610pts below Friday's close — this is extreme discount territory. At this point the selling is capitulation, and the probability of a violent snap-back is high. This is where smart money accumulates. The weekly fair value gap from the March swing is unmitigated, and it aligns with the 23,600 fib extension from the broader structure.
Both L1 and L2 must have failed. Price has broken 24k AND 23,830. This is a panic environment — don't catch the falling knife early.
Enter long at 23,610 ONLY on a massive capitulation wick followed by a bullish displacement candle. Volume should spike. This is a snap-back play.
Move SL to breakeven quickly — at +50pts or TP1 (23,830). In a panic reversal, price moves fast. Take profits aggressively.
If price closes below 23,585, the weekly FVG is violated and next stop is 23,050. Exit immediately — no holding and hoping.
| Target | Price | Points | R:R |
|---|---|---|---|
| TP1 | 23,830 | 220 pts | 8.8 : 1 |
| TP2 | 24,000 | 390 pts | 15.6 : 1 |
| TP3 | 24,220 | 610 pts | 24.4 : 1 |