QQQ is overall bullish but a reversal is always possible.
As you can see, QQQ is trading inside the blue trendline forming a channel.
We have two possible scenarios:
1- Continuation: The upper orange trendline is not valid yet, so we will be waiting for a third swing high to form around it (as shown in purple) and then buy on its break upward as a trend-following setup.
2- Reversal: The lower blue trendline is also not valid, so we will be waiting for the swing low to form, and then sell on its break downward. (as shown in red)
Then as it approaches the lower brown trendline, we will be waiting for buy setups to form.
As per my trading style: When our buy or sell is activated, the stop loss goes beyond the last swing from the other side. and I target double the stop loss size.
Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly! ~Rich