Gap closed, Short-term MACD cut zero line --> $1600 profits
5 min Emini Nasdaq 100
Hi,
Today's trade is not the usual trade that I usually do.. One of the greatest advantage we have as day traders is to stay nimble and react to market situations..
Market gapped down today... I thought that it was going to go down again.. You never know when there is so much talk of recession in the news and so much pessimism among the investors... I took a wait and see atitude to how the market would develop today... Price did not go down below the opening price.... it was wriggling up to close the gap... But was this enough to go long? NO! There were no good signals and price action was simiply too sluggish for my liking...
BUt at 11:25 price closed the gap with one big candlestick... and if sentiments were weak, it would have bounced right back... But NO! It didn't bounce back... on the contrary... price continued another surge... Mid-term MACD also cut the signal line nicely and Short-term MACD cut the zero line... I longed 1 contract at 1814 ...
Price action was promising after that, but it fell.... That didn't make me panic because I was still in the black... I decided to let it run... and at 1819 I entered 2 more contracts as stochastics bounced off the oversold line... After that, price made small steps increases upwards and I would say the trade was smooth sailing... I exited at 1844 when price felll in one big red candle with Stochastics, MACD all crashing down... profits of $1600.