So far the NQ is under a littel selling pressure but so far the selling is unable to take out any significant levels. This is an excellent opportunity for you scalpers to buy with a stop loss now @ 1406.00 and a profit target of 1414.00
R we on the same page. Your 40 EMA on your 60min chart should read around 1401.50??? Your 40 EMA on your 5 min chart should read around 1413.50???
ET is a difficult forum to do this sort of thing, T-Rex, my hat is off to you for making the attempt. all the best!
It is very likely that the market WILL test the 1406 level but NOT take it out!!! If you were long the market you would actually use this opportunity to add longs at 1408 and readjust your stop to coencide with the current lack downside momentum if you did not have your stop outside of this range. At 10:30am EST if the market has not blown past the 1406 price level then that is a good indication of another possible up day. This is what is commonly referred to as "running stops". A nice headfake to the downside followed by a breakout this afternoon. This is the theory. Now lets see how well theory does in actual trading?
This could be a very nice spike up if it holds above 1410.00??? NOTE: both the Dow & the S&P 500 are now comming back.
T-REX, as a general rule do you recommend using the filter parameters, that is, waiting until the low of a 5min. bar closes above the 40ma before entry, and conversely, waiting until the high closes below the 40ma before shorting? This seems to avoid a lot of whipsawing. If the filters are used. Do you buy at the close of the triggering bar, or do you wait until the applicable H or L of that bar has been exceeded?
If you bought @ 1408 your up 3 points!!!! NOTE: If the market breaks out above the 40 EMA you BUY MORE!!!
Nice base now forming on your 5 min chart. You would no doupt hold longs at this point looking to add more positions at the 40 EMA @ around 1413.00 price level.