1 Gap Closed, 2 Rebounced from Moving Average, 3 Stochastic, 4 MACD --> $1040 profits
5 min NASDAQ Candlestick Chart.
Dear Trader,
How's it going? The market is in a down turn these few days. It only makes more sense to go short than long. Although market opened with a gap down today, price moved further down before closing the gap. I wasn't in the market. I was waiting for the gap to close and for price to bounce right back down. and BINGO! at 12:30, the gap was closed and price shot sharply down from the moving averages, stochastic and MACD also shot down from the overbought regions. This is exactly what I envisioned. I shorted one contract at 1517 and another 2 at 1510. My stop loss was at 1520, pretty tight. Because I want to be out as soon as possible if I am wrong. After my entry, price was moving in my favor and I did not put a price target, I wanted to eat the full wave of it. However, at 14:00 pm there was a slight pull back and I knew the down trend is comign to an end. I put my profit target at 1495 and at 14:40 my profit target was hit and I am out with $1040 in profits. It's days like these that keeps me going!