Bounce off moving averages, downturn in stochastics --> $340 profits
5 minutes chart : Emini Nasdaq 100
Hi,
Last Friday was a huge plunge and I expected the momentum to continue to today.... and as expected, the moment market opened, price plunged... I was looking for some potential reversal at around 10:00 am.. and yes, the reversal came... I instinctively knew that today's movement is not going to be smooth like last Friday's... it's going to be a ranging kind of market... If you are not comfortable trading such a market, just stay on the side-lines rather than get yourself burnt...
I missed the opening price plunge... so I had to patiently wait for the next chance... my chance came at 12:50, a classic setup --> notice how price rallied to touch the moving averages only to bounce off in the downward direction again? This is further confirmed by the downturn in stochastics... Yes, this is where I shorted 1 contract at 1789... and another 2 contracts at 1787.5 when it pulled back... direction was pretty clear it's going down.. but by not much... since I dont expect much momentum left... I exited at 1784 where a doji candlestick formed with profits of $340... well, this is not alot,, but I am still satisfied that I can extract money out of such a ranging market..