Yellow circle: The market opened up ward, with some significant bearish setups pre-market. 15m, 1 hr, and 4 hr are all set to drop today, coming off the daily 21. But 5m opens bullish, and 1m tops it with a bearish engulf on a bullish 7J candle prior. This engulf was typically not the best signal for what we look for, but is the only signal at the top today that can be taken. I skipped it expecting something better. But judging by the underlying downward trend that was about to come, this should be enough to enter on.
Orange circle: if waiting a little longer, 5m pauses momentarily for a pullup and second entry. This pullup comes off the 5m 34, with a bullish small body candle, non-sig, and 1m makes a bearish gravestone 7J non-sig. Again, not the best signals, but the only ones at this time. This immediately reverses and tanks through the lows, and runs for the whole day.
Purple circle: 1m makes another attempt at a pullup shortly later, making a perfect bearish gravestone non-sig 7J. This move contains a juke, because 1m gets toward the lows, makes a bullish harami, and runs back through the highs to test the 5m 21 before the actual move comes. This juke was good, we could still short the initial move but wait for the exit and take it, anticipating the test of the 5m 21. Note that it does not quite reach the 21, but it gets very close, and this is a pattern we are developing now as a multi-trade setup.
Blue circle: 1m makes its first real up wave here, this time reaching the 5m 21 for our standard setup. Perfect bearish engulf and a second pop through the high shortly after on the 1m, which could cause us to endure some red for a moment, but then the move is back on track and textbook.
Yellow box: We get yet another 1m wave/5m 21 here, and though we don’t always want two, this is another entry for the final push to the lows on the day. Textbook again.
