Market Gapped Up --> Runaway gap, Narrow range, --> Stayed out of market
Emini Nasdaq 100 5 min chart
Hi,
Market gapped up almost 6 points today and the gap just didn't close... price went up and up.. In hindsight, you might be tempted to say, just go long.. that's easy to say, but if you look at he charts,
the price action is choppy and Short-term MACD movements are choppy in a zig-zag manner.. There just wasn't enough signal for me to enter the market.. and I dare say, this is one of the deadliest markets that gets alot of traders killed....
You might be tempted to say that Stochastic has given alot of signals, but this is not accompanied by MACD, the moving averages or price action.. If you look carefully, apart from the gap up of 6 points, price only moved aournd 12 points for the whole day.. I would consider this a ranging day... most of the price movement is taken up by the gap...
Stay out of such a market and save your trading capital for another day!