How I Use Market Internals To Day Trade QQQ

When day trading Nasdaq (via QQQ), I always track several intraday breadth indicators called Market Internals (MI). My most favorite MI indicator is the Nasdaq’s Advancing – Declining Issues.

03 March, 2021

BEARISH CONFIRMATIONS

Stay short as long as ADQDC confirms the move down.

25 February, 2021

BEARISH CONFIRMATIONS

Stay short as long as ADQDC confirms the move down.

24 February, 2021

BREAK OUT CONFIRMATION

When ADQDC breaks out alongside NDX, it confirms the break out. Also, ideally, the ADQDC needs to be above 1000.

22 February, 2021

CONFIRMATIONS AND BULLISH DIVERGENCY

18 February, 2021

EXTREME BEARISHNESS

When ADQDC drops below -2000, it signals an extreme bearishness. Within the bull market context, this might signal a good long entry point upon reversal.

16 February, 2021

BEARISH DIVERGENCE

When Nasdaq’s Advancing – Declining Issues indicator clearly lags behind the index, watch out for bearish reversals.

10 February, 2021

BEARISH CONFIRMATION

Odds of making money on the short side increase when both NDX and the ADQDC are dropping in sync.

08 February, 2021

DIP BUYING

Whenever the ADQDC is above 1500, look for dip buying opportunities.

05 February, 2021

INTRADAY REVERSALS

When the market is in a strong uptrend, the Nasdaq index often corrects in the mornings after the open. The good risk-reward long entry is formed when the Advancing-Declining Issues index reverses up.

02 February, 2021

STRENGTH

When the ADQDC is above 1400 and rising, this shows an exceptional strength of the market. Never short Nasdaq when its market internals show this type of strength.

01 February, 2021

CONFIRMATIONS

When the ADQDC is above 1000 and moving higher along with the Nasdaq index, it confirms the strength

29 January, 2021

BEARISH CONFIRMATIONS

When the model is SHORT and the market is under distribution, the ADQDC indicator helps in executing intraday short trades.

19 January, 2021

BULLISH DIVERGENCE

15 January, 2021

ALIGNED VS MISALIGNED

When the ADQDC indicator drops alongside NDX, it confirms the down move or is considered ‘aligned’. However, when the two indicators diverge or are misaligned forming bullish divergence, NDX tends to bounce.

07 January, 2021

MARKET INTERNALS STRENGTH

When the ADQDC is trending above the 1600 mark, this shows continuous intraday strength of the market internals. Every dip should be bought on those days.

04 January, 2021

BEARISH CONFIRMATION

Odds of making money on the short side increase when both NDX and the ADQDC are dropping in sync.

Once I am in a short position, I also observe the 15m chart of /NQ and /ES and keep my short as long as TTM Squeeze is in red mode.

ES, 15m

NQ, 15m

29 December, 2020

BEARISH CONFIRMATION

Odds of making money on the short side increase when both NDX and the ADQDC are dropping in sync.

24 December, 2020

BEARISH AND BULLISH DIVERGENCES

When NDX is rising but the ADQDC indicator is dropping, expect an intraday pullback. That’s what happened today after NDX tried to rally in the morning.

22 December, 2020

BULLISH DIVERGENCE WITH THE UP VOLUME – DOWN VOLUME

When Nasdaq drops in the morning but the Nasdaq’s Up Volume – Down Volume is pointing up, the odds favor a potential bullish reversal.

21 December, 2020

BULLISH DIVERGENCE IN THE MORNING

When Nasdaq sells off in the morning and continues to make intraday lower lows, which are not confirmed by the Nasdaq’s Advancing – Declining issues indicator, that can serve as a great risk-reward long entry point. That’s what happened today.

17 December, 2020

BULLISH DIVERGENCES

When markets are trending up (on the daily / weekly basis), NDX tends to dip intraday. If dips happen on the bullish divergence with the Nasdaq’s Advancing-Declining Issues indicators, usually those could be good dip buying opportunities. That’s exactly what happened today twice.

09 December, 2020

BEARISH CONFIRMATION

The odds of an intraday sell off increase when the Nasdaq’s Advancing-Declining Issues indicator confirms the intraday lows.

03 December, 2020

CONFIRMED vs NON-CONFIRMED MOVES

The morning intraday sell off was not confirmed by the Nasdaq’s Advancing-Declining Issues indicator, which formed a bullish divergence (the index bounced after forming an intraday low). The late session sell-off, however, came on the falling $ADQDC, hence, it was confirmed. It will be interesting to see what happens tomorrow.

02 December, 2020

BULLISH DIVERGENCE

Today’s morning dip was a great buying opportunity. The Nasdaq’s Advancing – Declining issues indicator formed a bullish divergence with NDX during the first 15 minutes of trading.

30 November, 2020

DIVERGENCIES

Today was a perfect day when intraday divergencies created amazing day trading opportunities. Initially, there was a bearish divergence between NDX and the Nasdaq’s Advancing – Declining issues. Later in the day, this magic indicator formed a bullish divergence (see the chart below).

27 November, 2020

DIVERGENCIES

When the NDX Advancing-Declining issues indicator drops while the NDX rises, this signals a potential intraday correction. When the NDX rises while the NDX drops, this signals a potential intraday bounce / rally.

25 November, 2020

BUYABLE DIPS

When the NDX Advancing-Declining issues is above 1000 and is trending up, all of the intraday dips are buyable (blue areas on the chart).

$ADVANC/Q and NDX, November 24, 2020

24 November, 2020

CONFIRMED vs NON-CONFIRMED BREAK OUTS

When the NDX Advancing-Declining Issues indicator confirms an intraday break out, the odds favor higher prices (green area on the chart). However, when an intraday break out takes place on the divergent breadth, a sideways move or a bearish reversal is likely (red area on the chart).

$ADVNC/Q and NDX, November 24, 2020

23 November, 2020

BULLISH DIVERGENCES

The price made an intraday lower low, however, this was not supported by the Nasdaq’s Advancing-Declining issues indicator, which formed a bullish divergence. The NDX rallied for the rest of the session after forming a bottom.

$ADVNC/Q and NDX, November 23, 2020

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