Reistance on top, double top, stochastics down, MACD down --> $1460 profits
5 min Emini Nasdaq 100
Hi,
Market volatilite makes it more difficult to get a sensing of direction... Normally, after a few red candle days you would expect today to go up... but... it went further down today... Be extra cautious in this market and play according to the signals... Don't let your pre-judgement of what the market should be like affect the way you trade.
Today's trade is based on resistance lines and double top formations... Basically, I watched the morning session closely and discovered that the moving averages presented pretty strong resistance... My tendency was to go short.... I was just waiting for an appropiate signal...
Finally at 14:30, Price hit the high formed by the morning session and immediately went down, forming a double top... Stochastics and MACD also cut the signal lines and went down with it.... I figured that if I shorted here, there would be good risk/reward since my stop loss is just going to be on top of the resistance line... pretty tight...
I shorted 1 contract at 1980 and another 2 more contracts at 1967.. I held my position all the way till stochastics started to turn up and a white candle appeared... I exited at 1947... with profits of $1460.