Market topping over? Short --> $840 profits
5 min Emini Nasdaq 100
Daily Emini Nasdaq 100
Hi,
How's it going? Market seems poised for a major correction... notice how we are not making new highs anymore? If you look at the daily charts, you will notice that the past 2 days have formed doji candles, suggesting that price might have peaked... and a downturn is just around the corner... This is exactly how I use the daily charts to get some idea of how the next day will be like... more of these will be covered in "Workbook for DayTrade Emini"
As the broad trend is still up... I am naturally very cautious in shorting... At 10:00 am when price broke my red moving averages, price rebounded sharply.... I didn't have a chance... the next time this happen was at 13:00... now conditions are different.. since there is a double top formation which is an extra powerful signal that we should go short...
I shorted 1 contract at 1962.5 with stop loss at 1967.. .after making a new low, price rebounded back up and I was slightly in the red... but it did not stop me out... and it started to go down again after touching my moving averages... I shorted another 2 contracts at 1962.5.. This time, price moved down for real and I held all the way till the end to close out at 1948.5 with profits of $840.