Most traders look at charts and see price action. At Profit Smasher, we look deeper—we see energy, psychology, and structure interacting in real time. That’s the essence of the triadic framework, and it’s what we use to decode movement in the Nasdaq futures market.
Trading isn't random. Every candle is part of a larger psychological feedback loop. Every imbalance reveals who’s in control—and who’s about to lose it.
What Is a Triad in Trading?
A triad is a three-part system that helps simplify complexity into a clear, repeatable model. In Nasdaq trading, our triad is:
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Psychology – Who’s in control: emotion or logic?
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Structure – Where is price relative to key levels (moving averages, bands, zones)?
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Energy Flow – Is the market heating up or cooling down? Are we in fear, greed, or balance?
When these three align, you have a trade. When they diverge, you wait.
Triad 1: Psychology (Control of the Session)
During the New York session, the battle between algos and retail gamblers becomes obvious. You can read it in the candles.
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If price is stretching outside of the Bollinger Bands and RSI is above 70, greed is dominant.
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If price is plunging under structure and RSI is below 30, fear is in control.
In both cases, emotion is leading—algos are setting the trap.
The trader's job is to recognize who’s being fed to the market and wait until that emotional energy cools off.
Triad 2: Structure (The Market Map)
The Nasdaq obeys structure when emotion fades. That’s why we use:
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20-period moving average – Trigger zone
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50-period moving average – Balance line
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200-period moving average – Gravity zone
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Bollinger Bands (2 deviation on 50 MA) – Extremes
Price stretches away from structure when gamblers take over, then returns to structure when algos step back in.
We don’t trade the stretch—we trade the reversion.
Triad 3: Energy Flow (Hot, Cold, or Balanced)
RSI isn’t just a technical indicator—it’s a thermometer.
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Above 70 = Hot. Expect snapbacks or structured pullbacks.
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Below 30 = Cold. Look for reversals or mean reversion.
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Around 50 = Balance. Watch for the next breakout or phase shift.
Volume tells us how loud the market is. RSI tells us the temperature.
When energy is extreme and structure is violated, that’s not a trade—that’s bait. Wait until price begins to cool and structure starts to matter again.
Putting the Triads to Work
Here's how we apply the triad system on NQ intraday:
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Identify the session psychology – Who’s in control? What’s the dominant emotion?
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Assess structure – Is price trading above or below the 20/50/200 MAs? Has it pierced the Bollinger Band?
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Read energy – Is RSI hot or cold? Is the market expanded or contracting?
If emotion is high, structure is violated, and RSI confirms imbalance—we wait.
If the market cools, price reenters structure, and RSI returns toward 50—we act.
Conclusion
The Nasdaq is a battleground of emotion and precision. Most traders only see price. We see the triads behind it—the psychology, the structure, and the energy flow.
That’s how we identify who’s feeding, who’s trapped, and where the next move is likely to happen.
This isn’t guesswork. It’s awareness.
Trade the triad, not the noise.