Upward Sloping Support Line PLUS mid-term MACD zero line crossing PLUS Gap closure
5 minutes candlestick chart
Hi,
Market opened with a 11 points gap down. Will this gap close? I don't know. Since the market is almost flat, I decided to let price action play it out before I make any trades. It did close the gap at around 10:30. A pity that I was not in the trade. After closing the gap, price immediately rebounded downwards and continued bouncing up and down. But if you draw a support line, you will notice that price do not fall below this line. This is the single most important evidence that the market is NOT going down for the moment. Why do I say NOT GOING DOWN instead of GOING UP? Simple, not going down doesnt mean it must go up. It can go sideways as well and you can lose as much money if you are trapped in a sideways market. When my mid- term MACD crossed the zero line, I decided to go long. I entered at 1694. I longed another contract at 1695. Stop loss is placed at 1691. I wasn't prepared to lose big, and my maximum loss is at $140. I placed a limit order at 1704 as my profit target. From 12:20, price spiked upwards and in a couple of minutes my profit target is hit and I am out with $380 profit.