Stochastics, MACD, MA --> Price bounces off --> $480 profits
5 min candlestick Chart EMINI Nasdaq 100
Dear Trader,
The market swung into a full fledged rally today and the were plenty of signals from MACD, stochastics and Moving averages to alert us to go long. At around 10:30, price began to bounce of the moving averages and this was accompanied by the upturn in stochastics and MACD. I immediately long 1 contract at 1498 and when price broke abvoe the high established earlier, I longed another 2 contracts at 1504. I was pretty confident of the trade and let the profits run. However, at 11:30, I began to see weakness in momentum and I exited at 1510. This resulted in $480 of profits in 1 hour. Not too bad.... However, if you look at the chart after 11:30, you will notice that price keeps on moving up. But there was no way I could have predicted that and I believe that I took profits at the right time. Greed is the number one enemy to successful trading.