Yellow circle: Before the open, 5m MACD is pulling up for what looks to be an attempt at an upwave. The 1m makes a strong bearish harami 7J though, and this tips us off that the open is to be downward. We can enter after 6:30 on the spike up through the high, but there isn’t a traditional candle. 5m makes a non-sig non-7J bullish hanging man, which is decent and can be considered right at the open.
Orange circle: 1m comes off the 21 and tanks, but doesn’t reach the 34 until later. We get our first 34 touch here, and can take it to a new low once more. Shortly after, 1m pulls up again for a wave and second pull up to a second new high, which sets up the next trade.
Purple circle: This third trade is textbook, but note the juke. 1m sharp spike off of essentially nothing, through the highs, and then a sharp bearish candle and bearish hanging man harami non-7J, before fully tanking off of the 5m 21. The setup before this move supports the recent findings that we need to take an immediate exit off of the 34 when the wave just barely missed the 0 or was very shallow, anticipating a full wave/juke after. This time, it didn’t make it above 0, which was fine, but the initial wave was a bit shallow and came with a juke immediately after, to make sure it got to the 5m 21.
Blue circle: On the way down on this stronger but slower wave, 5m MACD is still above 0, and gradually going up. We get another 1m 34 setup here and can enter again if we weren’t already in, and ride it down another 60-80 points. We probably give back 5-15 points on the exit because there are no 1m 7Js, and as soon as the 5m crosses back down, it makes double non-sig small body 7J candles and starts on its up wave move.
Yellow box: 5m makes it above 0 and sets up a perfect wave with the 15m 21. There are 2 bearish harami 7Js followed by a bearish engulf. Textbook. Since we are looking for a mountain reversal on the 1H, we can hold any of these shorts ideally the whole way down.
