Moving Average rebound EQUALS $430
Hi,
Seems like the uptrend is still in tact. How do I know this? Basically, you look at the moving averages and it's pretty obvious that they are all sloping upwards. Then you take a look at your MACD, again you realize that most of the time they are above the zero line. I didn't have much chance to trade at the start of the market, market was choppy, and I had to wait until 12:30 am when price rebounded from the moving average, I like this kind of trades because I can place a tight stop loss immediately below the moving average. I longed 1 contract at 1742.5 and another 2 contracts at 1748 when there was a slight pullback. My stop loss and profit target at 1741 and 1754 respectively.
Well, a simple calculation will show you that for the first contract, my maximum loss is $30 and my maximum profit is $230. This is an almost 8 to 1 risk reward ratio. So can you see why I like this trade set up so much?