Double top,Negative Divergence, break moving averages --> $520 profits
5 min Emini Nasdaq 100 Chart
Hi,
Market remains volatile with lack of direction... I am more predisposed to go short given the recent turmoil in the credit crunch...
Market gapped down today and went back up to cover it, but as you can see there is heavy resistance on top and price simply couldn't go beyond that.. At the same time, price was forming a double top with stochastics forming negative divergence...
I shorted 1 contract at 2094 when price broke the moving averages... another 2 more contracts at 2089 when price broke one of my support lines.. Also, If you observed, Long-term MACD crossed the signal line shortly after the entry, this provided a very strong confirmation to the trade.. I held my position all the way till price hit the support formed by the earlier session...
I exited at 2082 when stochastic moved up and MACD crossed the signal line... profits of $520.