Emini Trade Setup -- Rebound and support line!
How's your trading going? The market sure is tough recently eh?
You might be wondering why I trade only 1 contract recently. Reason ---> it is a ranging market! There is no real trend. It's simply not worth the risk to trade so many lots when market direction is unclear. Price went down heavily in a 17point move. I missed the boat and I didn't want to chase the price down. Furthermore, I didn't know how far this decline will go. Remember PATIENCE, basically this is a ranging market and experience tells me that price will rebound right up after a sharp fall. I resisted the temptation to short.... I waited for it to rebound and entered! Take note of the support line drawn at 1681.5. This is the support line which I drawn from the lows of these few days. I placed my stop loss there. However, I did not set a price target, although mentally I was telling myself it should be somewhere around 1696. Yup, price did went up to 1696 and dropped a little, I exited on the first sight of weakness at 1695.5. Not a bad trade at all in this market condition. A $170 profit.