Quiet Market, Bounce from MA, stochastic, MACD upturn, Hammer --> $260 profits
5 min Emini Nasdaq 100
Hi,
How's it going lately? Market's been choppy lately and trades don't seem good. Ya, trades don't come easy, but you just have to patient and wait for the chance.
The morning session was a nightmare, with price whipsawing all over... I made the right decision to stay out of such a market.. I had to wait till 1400 for my chance to enter..
This is really a classic trade, where price pulled back to the blue moving average, displayed a hammer candlestick (green oval in chart) and bounced right up... I entered 1 contract at 1859 and another 2 contracts at 1860..
At the same time, notice how stochastics upturned from oversold into the overbought region? The trade is further confirmed by Short-term MACD cutting it's signal line... However at the same time, we can tell that price still lack momentum by looking at the Mid-term MACD (green rectangle in chart) which is hovering around zero line, if the rally is strong, it will bring Mid-term MACD up with it.. This gives us some clue to not to be too greedy and exit when appropiate... I exited at 1864 when a red candlestick appeared.. Profits of $260.