NQ 5min Challenge
Past challenge from 2026-03-15. See the correct answer and explanation below.
SCENARIO
NQ is at 19,700. It opened at 19,800 and sold off 100 points in the first 30 minutes. Price then spent 45 minutes building a base between 19,680 and 19,720. It just broke above 19,720 with a strong volume spike. The VWAP is at 19,750, still 30 points above. The 9 EMA just crossed above the 20 EMA on the 5min.
Market Context
Market-wide weakness this morning after weak China PMI data. However, NQ has found buyers at the overnight low. The broader trend on the daily is still up.
Key Levels
A 45-minute base after a sell-off with a volume breakout is a strong reversal signal, especially when the broader daily trend is up. The overnight low held as support. Enter long above 19,720 with a stop at 19,670 (below the base) targeting VWAP at 19,750 first, then the open at 19,800. Risk 50 points to gain 80, with the daily trend as tailwind.
Prop Firm Implications
Mean reversion to VWAP after a morning sell-off is a bread-and-butter setup for TopStep accounts. Conservative target at VWAP protects the trailing drawdown.