Friday was a great first 30 minutes of trading, after which I stopped early, up about 250 points on each account. I executed a great opening short, followed by a long and doubling up after to finish a news reversal. News is making me consider trading only in these moments because of how easy they are.
Open
The open was set up to go up to reverse a 5:30 news drop. I waited for the open to decide whether it was going to pullback, and it did. Bullish gravestone doji followed by a bearish engulf, and this sent the 1m down just below the 0. After this, it reversed, returning to the 34 one time and that was the remainder of the reversal.
Day
The main move was about 8:15 AM, which set off a 350-400 point long, but I was not trading at that time.
After the open, the 5m pulled down to make its own Wave B, which ended with a clear bullish harami. After this, another 34 EMA setup came and this move was massive. I should have been trading but I didn’t take it.
Trades
I already drew out my trades in this picture so I will just include it below. But besides these, the 5m wave B was the ideal trade on this day.
The orange circle and yellow circles represent the open short, wave B long, and 34 EMA longs that I took.
Other trades:
- Yellow box: 1m on its way down, making a good low with MACD, and then coming off the 21/34 for another low.
- After the low, the 5m made a great bullish signal for the Wave B.
- The orange box represents the 5m pullback to the 34, which again set up for a great long with a 1m downwave, although the downwave did not go very deep in this case. This long was the best move of the day, and no real trades needed besides this one, for the rest of the day.
- Blue box: This is a 15m 34 False rejection, though we don’t normally look for the 15m reversals, and 5m gives a powerful bullish entry to take this move if we want to.
- Purple box: 1m down wave ends on 5m 21 and sets up another upward push. Non-sig 1m candle, so this is debatable but the trend is so strong, we can often assume at this point. Note that this move has one 5m 34 push and then this 5m 21 push after, with no other moves to take on the way up. This makes the 5m 21 worth taking but not necessarily if it was a second or third test.