Double bottom, Stochastics upturn from oversold and doji candlestick --> $580
Nasdaq 100, 5 Minute Chart
Dear Trader,
The market has turned from a downtrending one to a ranging one. However, there are strategies that you can use to profit from consolidating markets. The techinicals are overwhelming strong in the trade I made today. First, there is a double bottom chart pattern when price touched the bottom band of the Bollinger Band. Secondly, a doji candlestick appeared which often signals a reversal. Thirdly, stochastic bounced sharply from the oversold region. The chart is literally yelling at me to go long. Do you get the signal?? I longed immediately at 1517 and another 2 contracts at 1519 with my profit target at 1528, which is the neckline of the double bottom pattern. My stop loss was placed at 1512, below the absolute low of the double bottom. Within 45minutes, price shot up and I am in with profits of $580.