Gapped up, Gap Closure, MACD, Stochastics Down --> $860 profits
5 min Emini Nasdaq 100
Hi,
How's it going? The market today presented good opportunities for trading... Price gapped up about 20 points.. Normally, I would deem this as a runaway gap and there's little chance of the gap closing.. BUT, price movement till 12:00 suggested oitherwise... price simply couldn't hit above 2200...
Stochastics already turned down from the overbought region and price went down with it... I shorted 1 contract at 2192 and another 2 more contracts at 2182 when it broke the moving averages.. I am confident of the short as price broke the support level of 2190 with decisive price action...
The rest is just letting the trade work itself out.. When price hit 2170, which was a previous support level... stochastics started to turn up, Short-term MACD followed suit... and we have a situation where it's wiser to take profits than hope for the best that price will drop even further.. I closed out at 2171 with profits of $860.