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Downward sloping moving averages, bounced off, Stochastics, short-term MACD down -> $920

5 min Emini Nasdaq 100

Hi,

How is it going lately?
How long can this down trend go? Remember it always takes the market faster to come down than go up...
Today's trade is a classic.

Let's revise the conditions leading to the trade
1) Moving averages are sloping down
2) Stochastics and short-term MACD started to turn down...
3) Strong price action with candlesticks of reasonable body length..

Shorted 1 contract at 1682 and another 2 contracts at 1674 when it met resistance with my purple moving average.
I exited at 1662 when stochastics turned up with profits of $920.

Posted by Michael Taylor on November 2, 2009 5:21 PM |

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