1 Double Bottom, 2 Hammer Pattern, 3 Moving Average bounce --> $355 profits
5 min Emini Nasdaq 100
Hi,
How's the trading lately? Today market opened with a slight gap down of 2 points. As expected, the gap closed and went beyond it.. Profits today amounts to $355, not fantastic, but relatively a sure win...
Firstly, if you study the chart carefully, you will realize that price is actually poised to form a double bottom pattern with the previous day's price action.
Secondly, although market opened with a gap, price immediately bounced back with a hammer candlestick suggesting that the bulls are in control.
Thirdly, the moving averages are still upward sloping and the upward trend is still intact. Price bounced off the moving averages to give rise to the hammer candlestick pattern.
I immediately longed 1 contract at 1651.25 and another 2 contracts at 1654, my profit target was at 1659, the resistance established yesterday. My stop loss was at 1648, pretty tight and just below the moving averages. This is a high probability trade with all the technicals pointing in my favour. At 10:00, my position hit the profit target and I am out with $355.