A “float-back” is my favorite set-up and has a high percentage of being a profitable trade.
Here’s the way to play it:
- I prefer a 4 hour or daily chart.
- When price goes well beyond an entry level, sit still and watch.
- As price “floats” back into the short or long zone, this is your entry.
- As always, use an appropriate stop. That’s it !
In the 4 hour NQ chart below, you’ll see how price dropped well under the 4379.75 support level but eventually started to float back towards the support level. Once it got there, take your entry long. In this case you would currently be +40 points simply by being patient.
E-Mini NASDAQ 4 hour chart