Gapped up, Bounced off Moving Average --> $660 profits
5 min Emini Nasdaq 100
Market gapped up by around 10 points today... The gap seemed to have exhausted most of the price action and price was pretty much ranging for the morning session.. But generally the direction is up....
It is dangerous to go short in such a market... Hence when price turned down sharply (Highlighted in orange) I have the trade a pass.. Instead, I waited for price to close the gap and rebound.. It indeed rebounded from the moving averages ..
If you looked closely, you will notice that there are several doji candlesticks as price found support at the moving averages..
I longed 1 contract at 1985 and another 2 more contracts at 1991.. This was accompained by the stochastics turning up from oversold region.. .I held the position all the way till the close when I got out at 2000 with $660 profits.