Double Bottom, Upturn of stochastics, Bounce off Bollinger --> $280 profits
5 minutes Nasdaq Emini 100
Hi,
Market today was sure quiet before a slew of earnings reports... I wasn't too keen to enter the market and half expected it to be inactive like yesterday...
However, at 1:25 pm, price started to form a double bottom formation, with price breaking through the moving averages and stochastics turning up from the oversold region,,, This is reason enough for me to go long... I longed 1 contract at 1826 and another 2 contracts at 1828 when price pulled back, my stop loss was simply below the blue moving average at 1825. Yes, this is a pretty tight stop loss and I was determined to get out fast if things don't go the way I expect it to be..
Patience paid off and price jerked up slowly above the high established by the morning session.... I got out at 1832 with profits of $280.