Cut loss at -$10
5 Minutes Candlestick Chart
Hi,
Consumer confidence will be announced later at 10:00am. This is probably the reason for the uneasy and slow movement in the market. Normally I don't enter the market in the first 15 minutes of the opening bell. Today is different. Notice that price has hit the moving averages and there is a slight rebound, furthermore, stochastics and MACD is moving up from oversold regions. I decided to take a risk and aim for a 7 pt trade ( from 1697 to 1704). However, at the same time, do take note that the mid-term MACD is pending on crossing the zero line. This does not bode well for the trade. One of the advantages of using multiple MACDs is that it allows you to detect trends in different time frames. In this case, our mid-term MACD is in conflict with our short-term MACD. This is the main caveat of the trade. Nevertheless, I was decided to enter the trade and cut loss quickly if things go against me. I placed my cut loss at 1692.
After entering at a slight rebound at 1697, the market moved erratically and unpredictable. I was feeling uneasy when it went down all the way to 1694. This simply means that the market is still not ready to go up. I decided to cut loss and was lucky to get out at 1696.5.