White box: 530 news comes and goes without much effect. 1m pops up and reverses it, so nothing we can do about that this day. However, note that the 1H MACD (and 4H) are very clearly telling us that the day will be strong and downward. We can expect a 4H push through the 21 and probably to the 34 on these days.
Purple box: The market opens downward without much of a setup, so we miss the opening short and wait for the reversal. This reversal comes in the first hour. Once the 1m starts popping up, it hits the 34 and immediately sets a new low, off the 5m 7. We know that if we take this 34, take the profit immediately at the new low because it’s off the 7.
Yellow circle: After allowing the market to come up, we get a 5m test along the 34 with 4 candles, a great bearish harami, and almost a successful push above the 0 line. This is a bit tricky because it doesn’t finish the wave, and we typically would want it to, but the harami and 1m candles at the top are strong enough to reverse. It also comes off the 15m 34, which should be enough of a setup for a short, and it is.
Purple circle: If we miss the early entry while waiting for a full wave, the 1m pulls up without a proper buy signal, twice. The first hits the 34 and falls back and gets stuck, and the second is a successful 1m pullup/wave B with a strong 7J non-sig entry candle for the short. This can be held through the subsequent fake pullup that comes shortly after, not testing the high but nearly getting above the 1m 0 line again. The market is pretty slow after this, but steadily down.
Yellow box: This is another tricky setup, with 5m testing the 34 again, but we cannot use it after already using it earlier. We typically want this setup to be skipped when the prior 5m attempt at a wave just barely failed, but it is tricky because it looks like a great second 34 test to short. If we short this, we do not get a new low, but we can take profit and exit on the 5m bullish harami spinning top if so.
Purple box: After we get the full 5m wave, this comes off the 15m 34 again, as well as 1H 21, and all hell breaks loose. 5m makes a great 7J bullish spinning top followed by a bearish engulf, and 1m makes its own sharp 7J bearish spinning top (non-sig) and immediately reverses hard. This final move drops around 200 points in 1 hour.
