Double Bottom formation, bounce off BB, stochastics up, MACD up, --> Long --> $110 profits
5 min Emini Nasdaq 100
Hi,
Market gapped down today only to recover quickly and went down again... Is there a trend? I can't tell from such irregular price movements. But one thing's for sure--> the daily charts are still on the up trend... It would be unwise to short..
There are several technical signals that came into play for today's trade.
1 There's the double bottom that formed in the price pattern as it hits the bottom of the Bollinger Band
2 Stochastics formed a similar double bottom patttern
3 As we confirm the double bottom, stochastics cut the signal line
4 Short-term MACD cut the signal line as well.
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Although upside is limited by the resistance formed by high in the morning session, risk/reward is reasonable and I entered 1 contract at 2168... price proceeded to cut the moving averages which affirmed my conviction... I waited all the way till it hit 2174 which is a resistance and I started to be cautious... I exited at 2173.5 with profits of $110.