Yellow circle: This day is a bit tricky during the set up of the main move. The 1m opens a bit sideways, and with 5m hanging around 34, we can wait for a short entry, which finally comes around 6:50. We can take profit anywhere after 7:00 after breaking lows, but it is tricky because the 5m candles are not significant enough for the fake spike that comes soon after.
Yellow circle 2: 1m pulls up for the first wave on this down move, and sets up with a great bullish gravestone non-sig 7J followed by bearish engulf, taking it straight through the recent lows.
Purple circle: This is an optional 1m 34. There isn’t enough of a good context for it but off of 1m MACD, it’s a standard explosive setup because of it being bullish and above 0, with no sell candles.
Orange circle: 5m makes a bullish candle here, and this is a great trade, but not easy to see. 15m MACD was going up before 6:30, so we know there is a bigger upward move coming, if we notice that. If we have noticed it, we can look for the 5m reversal which comes shortly after 8:15, with a MACD divergence and 1m divergence/wave B type setup as well. This move runs for over 500 points. The 15m MACD sets it all up.
Blue box: If missing the first entry, 1m makes a standard 34 setup here to enter late and then hold through the massive run.
Yellow box: After running for a while, the 5m bearish engulfs at the top, and the market starts falling again. We could look for this short, but the setup is difficult because it comes off of the 4H 21 without a 1 hr downwave. We cannot assume the set up would be totally reversing off of that, but it seems like it wants to afterward. The next real trade comes with the 5m pulling up midway during the reversal. Once it reaches the 34, this is tricky, because the 1m makes a great bearish setup and it looks like it is ready to go lower, but 1m fakes and runs up again shortly after the 34. This is not easy to understand. I think the point is that the 5m crossed up already and was near the 0 line, so we should look for a wave before shorting, but there are surely instances where this short would have been enough. To be safe and consistent, I believe we should wait for the wave instead of shorting immediately, but if we miss it, look for a 1m pullback to the 34 or skip it.
The perfect setup comes shortly after, with the blue circle showing the 1m short signals, and 5m bearish harami 7J being a much stronger signal than the prior bearish engulfing without 7J. This move runs until the end of day, but doesn’t finish. Take profit whenever.
