200-Point NQ Reversal Trade Using Order Flow

Hey guys, Dan here from Funded Trader Academy with my trade of the week. Let’s go ahead and break down this nearly 200-point reversal trade on NQ from Tuesday, June 9th. Now, normally I take trades on the ES, but this setup was a bit cleaner on the NQ. Same essential setup, different equity index. All right, so we’re going to look into this setup from start to finish and dial in the specifics using order flow to qualify this trade. Before we dial in those specifics, let’s provide a bit of broader market context and some of the pre-work done before the opening bell. So, let’s start with a clip from the previous night’s market recap video from June 8th. I share this with the FTA community every day, where I cover the day’s setups and frame the narrative for potential future scenarios. Here’s that clip from the ES. All right, let’s take a look at the S&P for today, June 8th, 2026. So, Friday heading into tomorrow is going to be the real test if we can get back up into this failure area up here, this imbalance up in here through the overnight. We’ll kind of have to see what tomorrow brings. But for the time being, this could be… I’m not calling it a top. I’m not calling anything along those lines, but if one were to start, we stalled out here at the all-time highs, and we’ve created new bearish flow to the downside on the daily. Okay. So, we’ll see if we can get price to pop back up into here, fail, and give us some kind of a failure push back to the downside. Okay. So, from that clip, you can see that I wanted to see some sort of a push into that daily imbalance. I wanted to see some failure signatures and a move back to the downside. Heading into the day, the overnight session was headed in that direction, but had not done it yet. The Asian session rallied off the previous day’s close. You can see that bullish push here. You can see the London session sort of flattened out a little bit, and then we had this slow grind in that pre-New York session headed in that direction. So, then comes the open. You can see the volume start to surge in. The first 10 minutes into the open, price chopped around. Then came the fake move into that imbalance. You can see the heavy bullish flow into the imbalance above that 29,743 level, trapping some late retail traders at the top. Once that happens, delta shifts from aggressive buying on the fake move back down to institutional selling. Once the 29,743s broke back down, I entered short, and down she goes, right through the London low and back to another area of imbalance created during that overnight session. This one was a 3.5R trade and nearly a 200-point NQ move. So, let’s recap. Before the bell, I identified my key levels and areas of interest. I simply waited for price to arrive and offer me my entry model of a failed breakout, which includes a delta shift, trapped traders, and a key level breakdown. I was able to check all those boxes on this particular move. Then I went ahead and risked capital to capture that pre-planned move back down to another area of imbalance, trading from level to level. Okay, I hope that was helpful, guys. We’ll see you over on the next video. Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop on board. We’re looking forward to trading with you.