Ranging market but still managed to rip in $220 profits
Hi, the market has been ranging for these few days and there are not many economic news announcements. I would say the market is in a very slight downward bias now. Friday, the last day of this trading week was no better and I was reluctant to take any heavy positions. One way to trade ranging markets is to wait for price to hit the Moving averages and a downward confirmation with a 2 point candlestick ( as show in circle on figure). I shorted 1 lot to test the market. At the same time I placed my stop loss and profit target orders immediately ( as shown by the 2 green bands ). I was prepared to take a loss if price went up suddenly. The market was erratic and there was no way to tell which way it will go. Price of the Nasdaq 100 Emini Futures dropped further to 1757.5 and I shorted another contract. When it hit 1753.5, my profit target was automatically hit and I exited the trade. This trade lasted almost an hour... not an easy trade at all. I could have been whipsawed out of my stop loss anytime.