Double Bottom, Uptrend, MACD --> $740 profits
5 minutes Emini Nasdaq 100 Charts
Hi,
Today's trade is a long one, but a very profitable one. This trade is a low risk, high return set up. I hope you can recognize this pattern and profit from it again when you see it again.
Firstly, we can see that the moving averages are trending upwards, this means that the uptrend is not broken yet and there is no case for going short.
Secondly, although the markets were boring in the morning.... price formed a double bottom pattern. Now, usually double bottom patterns form at the end of a downtrend, but this is a powerful chart pattern and even when it appears in the context of an uptrend it is still valid. I went long 1 contract when price broke the neckline at 1773.
Thirdly, mid-term MACD has just cut across the zero-line, this is also a powerful signal that price has enough momentum to move even further.
Price took a break and consolidated at around 1780, when it broke out again at 2:25 pm, I went long another 2 contracts at 1780... Beyond 1780,, I had no idea where price will go...
I sensed some weakness at 15:15 and when price hit 1790, I exited all 3 contracts with $740 profits.