'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Monday, December 13, 2010

Observe & Trade


Almost flat market day today, and this 5-min. chart from QQQQ which is identical to NQ from the e-minis shows a short trade at the last hour.

By observing the pattern one hour or two before the close, you cannot make a conclusion where it is heading.

But the 20 ema is descending, so the confirmation is to short this index with a tight stop.

NQ moves $10.00 per o.50 points, so if it moves 10 points, you have a gain of 20 points for a profit of $200.00.