Bounce off Moving Average, Stochastic Up, Good Risk/Reward -->$350 profits
5 min Emini Nasdaq 100
Hi,
First of all, I want to state that today is not a very good day for trading. Price movements were slow and simply zig-zagged all the way... I won't blame you for staying on the sidelines...
Second, this trade that I made is not really a good execution as I missed the second leg of the trade.... The major reason for entering is that the risk/reward is tremendously in my favor as I placed my stop loss just beneath the moving averages..
If you observed the price movements, you will notice that until 12:00pm. you simply couldn't tell which direction the market's moving... Short-term MACD's hovering around the zero line and this is a typical KILLER MARKET. You would be slaughtered if you entered here..
I had to wait all the way till 12:00 for Stochastic to move up from the oversold region and price to bounce up from the moving averages.. As I mentioned before, risk/reward is good. Even if I lose, I won't lose big... I longed 1 contract at 1915 and another 2 contracts at 1919 and held it all the way till 1923.5 when a red candle appeared and stochastic appeared to be cutting downwards... profits of $350.