Gap closed, Hammer CandleStick, Stochastics up, MACD up --> $960
5 min Emini Nasdaq 100
Hi,
Market gapped down by around 5 points today... Within the first 5 minutes, there was immediate signs that price tried to close the gap.. The technicals were too compelling for me to go long.
1 There was a hammer candlestick suggesting downward support.
2 Stochastics cut very beautifully from the oversold region upwards
3 Short-term MACD did the same by cutting the signal line.
4 Mid-term MACD served to confirm the trade by cutting the signal line too in the middle of the trade
I longed 1 contract at 2143 and another 2 more contracts at 2152.. I held my position all the way till price hit the moving averages... then a doji red candlestick appeared and it signaled time to get out.. Stochastics also started to turn down... I exited at 2165 with profits of $960.