Gap Closure, MACD up, Stochastic up, Hit Resitance --> Take profits $560
5 min Emini Nasdaq 100
Hi,
How's it going lately? Markets have be muted ahead of FED meetings... But today, it gapped down and presented a good opportunity to play the gap closing.. Normally I don't like to play gap closure, but the price action today is strong and I placed my stop loss at 1981.5 so if I am wrong, I don't get hit too badly..
I longed 1 contract at 1986 and another 2 more contracts at 1990.. Notice how stochastic cuts up into its signal line and how Short-term MACD and Mid-term MACD also cut their signal lines? All these signals serves to confirm my trade.. As price rallied to yesterday's close (which is a natural resistance level), I became cautious as price action appeared sluggish.. I exited at 1998 when stochastic started to turn down with profits of $560.