Yellow circle: Market opens up downward off of the 5m 34, immediately breaking lows, and then 1m pulls up with a non-sig bullish spinning top, to get above 0. This first up wave sets up our first short. We get a bearish gravestone doji 7J non-sig signal, and we can short this, or we can take the following trade which has a slightly more sig-candle despite neither being perfect. The subsequent drop is slow, but we are also coming off of the 15m 21 and nearly the 15m 34 with a D- MACD, so we can trust this move. 5m MACD hints at it wanting an up wave, which makes this a bit tricky. Not necessary to take this first short.
Orange circle: This is the second pull up on the first move, a slightly lower high with a bearish engulfing. Either entry works, though this one is considerably worse.
Purple circle: On the way down, 1m MACD pulls up C+ for a moment to stop at the 34, where we get a bearish harami and an immediate tank after. Textbook.
Blue box: Note that the 1m wave here in the blue box fails to take it to a new low off of the 5m 21. 5m makes several bearish sig-candles (non 7J) at this time, and looks to want to push lower, especially because the low on the 5m is just a bullish non-sig candle. 15m also made no sig candles here. But the 5m MACD has made serious progress on its way up, and continues up until it finishes its wave, so the 1m wave/5m 21 here needs to be ignored. I am noting it for the model.
Orange box: After 5m makes it above 0, it gives the first signal for a downwave short, with a bearish engulfing after multiple bullish spinning top non-sig 7J candles. But This is not enough. We are coming off of the 15m 34, just barely, but the 5m makes another pullup soon after, though this does not break the highs. So the original short stays intact, but another entry later would be more ideal.
Purple box: This final entry is the best trade, with the 5m immediately failing and breaking lows to end the day. This tests the 15m 34 again, and the 15m MACD makes its second push to exhaust itself before tanking. The first entry comes on the MACD’s first push, but this concept still needs some analysis.
