Double Bottom, Bounce off Moving Average, Stochastics up --> $320 profits
5 min Nasdaq Emini 100
Hi,
Again, for those who have been following my trades, today's set up is nothing new.. This is one of my favourite set ups... Market gapped up by more than 10 points today and the gap absorbed much of the move today.. As usual, it was trading in a ranging fashion for the morning..
The real chance came at around 14:30 when I saw price bounce off the moving averages and stochastics started to turn up... price seems to be forming the double bottom pattern again... Well, you might ask how do I know? Fact is, I don't know, but if you wait till the pattern form, you will have less movement to trade. So you just have to trust your instincts and follow the technical indicators.. Furthermore, this is a low risk trade, placing the stop loss just beneath the moving averages.. I longed 1 contract at 1937 and another 2 more contracts at 1938 when price borke the neckline...
I held my position all the way till close to closing bell where I exited at 1943 and stochastics started to turn down.. Profits = $320