Shorting QQQ: Day Trading Strategy

Nasdaq tends to chop around on most trading sessions, especially during the bull markets. Even when the index prints a net gain for a session, its intraday trend is usually lacking direction and generates a lot of false positive intraday moves. However, when index sells off, its intraday trend is much more pronounced, which yields a favorable risk-reward short-selling day trading opportunity.

I use the following tools / indicators to help time my QQQ intraday shorts:

Nasdaq’s Advancing-Declining Issues indicator (ADQDC in ThinkorSwim)
Nasdaq’s Declining Issues indicator (DECNC/Q in ThinkorSwim)
Nasdaq’s Up Volume – Down Volume Indicator (VOLQDC In ThinkorSwim)
Nasdaq’s TICK Indicator (TICK/Q in ThinkorSwim)
Nasdaq’s Bullish Percent Index (BPCOMPQ in stockcharts)
Nasdaq’s 1m Point&Figure and Renko charts (charts in TradingView)
TTM Squeeze and TRIX in ThinkorSwim

The best trading opportunities come when all of these indicators are aligned. During the bull markets only 15% to 20% of trading sessions will offer shorting opportunities. During the bear markets, this number will be around 40%-50% of the trading days.

Below are some of the examples: