Doji candlestick, Stochastic pop up, Good price action --> LONG --> $790 profits
5 min Emini Nasdaq 100
Hi,
Today's trade is pretty straight forward... I was especially careful during the first 30 minutes of market open... Are we getting a continuation of yesterday's downtrend? or are we getting a bounce back? these are the questions that constantly ran through my mind as a trader...
NOTE: I couldn't predict the market direction and the best way to trade is to let the market speak for itself..For a moment, I really thought that market was going down....with the huge red candlesticks from the opening bell..
But if you are observant enough, stochastics is also quietly turning up... implying a lost in downward momentum... at 10:00.. a doji red candlestick appeared and with the next candle, price shot up together with stochastics... I longed 1 contract at 1942....and another 2 contracts at 1947...
Confirmation signals from Short-term and Mid-term MACD came ( notice they crossed the signal line? ) Although price rebounded slightly from the moving averages, this gave me confidence to sit tight...
I exited at 1958.5 after doji patterns started to appear after hitting the moving averages..profits of $790.