Trading Nasdaq futures (NQ) short this morning resulted in a profit of 10.25 points or 41 ticks. The setup was one I had been tracking since the coaching sessions at 6am. The possibility of going long was prohibited due to the Stochastics being at the point of overbought on both the 5 and 15 minute timeframes. Therefore, patience was the key in waiting for price to prove that a resistance area strong enough to sent price down had been found.

The 15 minute chart was now overbought. The 5 minute had closed below the fast moving average, formed a bullish bar, but could not manage to maintain price action above the fast moving average. Instead of forming a second bullish bar, a bearish bar was forming. This coincided with the 1 minute chart showing a hidden bearish divergence.

Trading Nasdaq Futures (NQ)
Trading Nasdaq Futures (NQ) – Short Entry

After entering the short position, I immediately set a profit target at 7628 (a few ticks above the ATR on the 5 minute chart). Now there was a possibility of price going down to the ATR on the 15 minute chart. However, more than likely, price would hit the ATR on the 5 minute and bounce before going lower.

Nasdaq Limit Order for Profits

A few minutes after the market opening, the limit order was filled with a profit of 10.25 points or 41 ticks.

Limit Order at 7628 Filled

Although price did go lower, 7617.25, then immediately bounced up to 7648.50, which would have taken me out on a stop. In other words, if I was greedy and wanted more, I would have given my profits back to the market. During these radical market waves, taking profits is a much better solution versus holding for more profits.