Indices gapped down this morning. MNQ displayed relative strength. Shorted 10 contracts at 11646.50 where the standard deviation high (yellow line) and 3 min 21 EMA coincided with a 30 second overbought stochastic. Price shot up to close the morning gap before it started to reverse. Exited 5@11626.20 at the VWAP where it bounced. I was looking at the other indices which where all near the lows of the day so I decided to hold through the bounce. Exited 2@11627.50 when it came back down. Here is where I got stubborn. I should have exited the remainder when it retested the VWAP since there was a major tick divergence. I was hoping for the other indices to make new lows to drag MNQ with it. That didn’t happen and MNQ started to move up. I exited 1@11644.75 and 2@11649.25. Poor decision making on the final three contracts. Ended with a profit of $262 which should have been around $400 if I would have closed the remainder on the VWAP retest.
