Gap Down, Stochastics Down, MACD cut Zero line --> $580 profits
5 min Emini Nasdaq 100
Hi,
How's it going? The market gapped down today... I captured only part of the movement... I did not captured the part where it closed the gap....
After gapping down almost 6 points from the opening bell, price made several attempts to close the gap but was unsucessful. It's logical to think that price momentum is weak and it does have problems closing the gap... Indeed i was looking for a good shorting opportunity...
The chance came at 11:15, when Stochastic began to turn down from the oversold region accompanied by a red candlestick... My risk/reward? Good! and my stop loss was just yesterday's close at 1936.. I shorted 1 contract at 1933 and another 2 contracts at 1928 when price broke through the moving averages.. Notice how Short-term MACD also crossed the zero-line?
Price tumbled down... all the way... and I was tempted to exit at 1924,, but held my horses until it hit 1919 and bounced up with a white candle.. I finally exited at 1920 with $580 profits.