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Nice Triple bottom, Double bottom Stochastics --> But No Trade, why?

5 min Emini Nasdaq 100

Hi,

Market gapped down and spent most of its time trying to close the gap... price action was choppy and it just didn't seem to go anywhere...

Price formed a triple bottom and stochastics formed a double bottom at around 14:00... This seems like an exellent chance for entry, but if you observed carefully, you will realize that Short-term MACD is too close to the zero line

Furthermore, there is limited upside potential since all the moving averages presented resistance to price... I decided to forgo the trade in view of the risk/reward potential of this trade..

Posted by Michael Taylor on December 13, 2007 5:52 PM |

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