I decided to take a peak at the DIA, which is a nice substitution to the YM if futures are not your thing.
The same spinning top on the YM that occurred on the DIA with an entry of $132.30 approx. Current price = $134.30. Current gain = $2.00/share.
To make the $850/contract, you would have needed to trade 425 shares of the DIA. 425 shares of DIA w/o margin = $56,227.50 of capital required.
So, if anyone is wondering why trade futures, here you go - you could have either 1) traded ONE futures contract with as little as $2500 or 2) traded 425 shares of the DIA with $56k of capital required.
Keep in mind that with that leverage that it can work against as quickly as it can make you money.
For this trade - we are above 50 SMA, but with a shooting star type candle pattern. That's a concern. I would have liked to see a strong close above that SMA to feel good about this long. At the least, stops should be placed near the bottom of this shooting star and possibly consider a short if price trades through the low of that candle. We could see a channel type pattern going on here - bouncing back and forth. There's money to be made though, no doubt.
