Gap Closure PLUS rebound from MACD
5 Minutes Candlestick Chart
Hi, This trade lasted for an hour and resulted in $290 in profit. The market opened with a gap down of around 5 points. Now don't be too anxious to go long and expect the gap to close. Sometimes, gaps don't close. I waited and my chance came at around 10:00am. Price rebounded from the moving averages. I placed a limit order at 1691.5 which was slightly further than what the price was at that moment. Price slided a little bit and I was lucky to get a fill. Stop loss level is at 1688, quite close, so the risk is not really that great. I longed another contract at 1694 and price ultimately hit my profit target at 1698. It even continued to 1702. There was no way I could predict that it will go beyond the gap. However, I can almost tell for sure that it was goigng to close the gap. So profit target is best placed at 1698 ( the gap level). Just bear in mind, GREED kills!