Gap Down, Bounced off moving average, Doji --> $420
5 min Emini Nasdaq 100
Hi,
The hype today's about china. China Stocks went down by as much as 8%... so how's that affecting the US market?
Well, the nasdaq did gapped down today by almost 10 points. Normally such a huge gap down, we would expect price to continue in the direction of the gap and further widen the gap... However,... a trader has to be nimble and follow the flow...
Price rebounded from the moving average... I immediately longed 1 contract at 1925 and another 2 contracts at 1928.. My risk / reward is good.. cut loss position is just below the moving average at 1922...
Nasdaq 100 went all the way to cover the gap and beyond.. however, after that, a doji appeared and I exited all my positions with a profit of $420.