Gap Closed, Bounce from moving averages, stochastics upturn --> $305
5 minutes Nasdaq Emini 100
Hi,
How's it going lately? This is my first trade after one week of rest... hopefully things don't go rusty...
Price gapped up around 6 points today... and it began to close the gap as soon as the opening bell... I did not participate in this gap closing trade... Instead, I waited for the gap to close and pull back all the way to near the moving averages...
This is a higher probability trade, notice that all the moving averages are slanting upwards indicating an upward trend instead of a downward trend... this gives us the GO SIGN to long instead of short...
As soon as it pulls back to the moving averages, it bounced, I longed 1 contract at 1823 and another 2 contracts at 1824 at the pullback on the way up... notice that stochastics turned up from oversold region? this is a classic rebound...
I exited at 1828.75 when price showed some resistance when it reached yesterday's closing price... Profits of $305.... not much, but i kind of guessed it's going to be a quiet day today..