Gap down, Stochastic Down, MACD down -->$160 profits
5 min Emini Nasdaq 100
Today price gapped down by almost 8 points. A big gap down... normally, if the magnitude of the gap exceeds 5 points. Price could go either way --> either it could close the gap or continue in the direction of the gap (resulting in a runaway gap).
The gap down resulted in a downturn in stochastics together with MACD from the opening bell and I shorted 1 contract at 1927... then another 2 contracts at 1925... Price movement was very volatile and it was jumping up and down and making me feel uneasy about the trade... it could end up as a ranging day... and I hate such volatile yet ranging days... it's simply not worth it to trade in such markets.... . I exited at 1922 with profits of $160... Notice that after I exited, stochastics started to turn up.? (orange circle)