Fading Trade,Nasdaq Emini hits Resistance at 1800 -> $420 profits
5 min Nasdaq Emini 100
Daily Nasdaq Emini 100
Hi,
Today's trade for the more accomplished trader, because it requires you to go short in an upward trend. However, with practice, you should be able to identify shorting signals even in an upwardtrend.
Firstly, we can see that markets are choppy in the morning session as NQ hits the resistance at 1805, this tells us that there is a good chance that price might fall back down again.
Secondly, looking at the daily chart, although the upward trend is still in tact, it has hit the upper Bollinger Band and also the resistance trendline that I have drawn. This does not mean that the uptrend is going to end. It simply means that there might be a correction before moving up further. Remember, there are no technical signs to prove that the uptrend has ended.
Thirdly, when price hit above 1810, there was a sharp reversal by a huge red candle stick and stochastics also moved down from the overbought region..I immedidately shorted 1 contract at 1810 at 2:15 pm and another 2 contracts at 1807 at 2:35 pm. My profit target was at 1801, yes, the trick is to put your target slightly above 1800.... At 2:55pm. my target was reached and I was out with $420 profits.