Market choppy ahead of FOMC, Stochastics down, Bounce off MA --> $320 profits
5 min Emini Nasdaq 100
Today the market opened with a slight gap up of around 2 poiints. The market immediately set itself to close the gap, what I like about this is that price bounced off the moving averages nicely...
This is further coupled with stochastics turning downwards... I shorted 1 contract at 1944 and another 2 contracts at 1940... Notice that during the trade,, I almost got whipsawed out? My stop loss was at 1948.. but price all the way up to 1946... It was close... but remember.. part of trading is to sit tight and let the trade pan out.. if you are wrong.. then you lose money.. simple as that.. but don't ever change your trades mid-way..
I didn't really like market movement after that and price was having trouble going down further... at 10:30...a white candle appeared and I got out at 1936 with $320 profits...
Notice the region I highlighted in orange? This might seem a plausible trade with stochastics turning down and price bouncing off the moving averages... But, look at Short-term MACD... don't you think its abit too close to the zero-line? I didn't take this trade... with hindsight, it might look like a good trade... However, in real-time.... you have to face the brutal fact that this would've been a high risk trade and you have to let it pass.