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Shooting star candlestick, Gap closure --> Short --> $720 profits

5 min Emini Nasdaq 100

Hi,

Today's market gapped up but immediately formed a shooting star... This is simply a bad omen that price is going to fall... Stochastics also started to fall and I shorted 1 contract at 2213 and another 2 more contracts at 2204 ....

The logical place to get out of the trade? Yesterday's close will form a natural support line... notice how price bounced off the resistance and a white candle appeared? Well, I just exited at 2195 with profits of $720.

Posted by Michael Taylor on October 26, 2007 5:15 PM |

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