Yellow circle: The market opens today with a massive bearish trend going through the recent daily lows prior to the most recent daily up wave. It is a huge push through these lows, with all the energy built up over the previous month or so on the daily. The 1m pulls up to the 34, makes a massive bearish hanging man harami along the 34, and begins falling immediately after. There is no pull above the 0 line on the 1m, or a 7J or anything. We either take this immediately or miss over 300 points.
Orange circle: If we wait for the next real setup, we get a bullish move on the 1m with a bearish 7J non-sig candle, falling to about the 0 line, and another bearish harami on a fake spike. This is technically a 1m Juke as well, going through the previous high. But we get an immediate new low after this, and note that the wave here is shallow. The 1m pulls up even higher shortly after. However, most importantly on this move, is the fact that we are getting a juke because the 5m did not reach the 21, and the juke takes it up but there is just too much distance to the 21, so it doesn’t quite make it. In the end, we should be looking to skip the initial short on the wave with 5m 7 if the 21 is close, but here we just can’t win, and might have to just accept the bearish harami for about 40 points on the total move (max). Overall a difficult first wave considering we probably want a much larger move at this point but cannot get it yet.
Purple circle: After the previous mess of a first wave and juke, we get a 5m pull up to the 34, which sets up with a bearish harami 7J and everything looks perfect. However, note again that the 1m has a plan to juke again, throwing the first trade out and making a massive bearish non-sig 7J as the signal to get back in. This happens because of the 15m. We got our 5m 34 setup on the 15m 7 without really testing the 21, but this subsequent juke on the 1m actually sends the 15m closer to the 21. This is an identical move when compared to the previous trade, except occurring with the 15m rather than the 5 21. I felt it was very important to note how the market repeated itself in this way on this day.
When the 5m struggles to get through the lows, we get a bullish harami on the 5 and a lot of bullish 1m dojis (non-sig) at the same spot. This sends the market right back to the 200s near the 5m 34, and it ends up as a 5m wave developing this time. We get a bearish gravestone non-sig 7J on the 5m, and the 15m is not quite at the 21. Here we should know by now, to expect a test of the 21 to occur, or at least to wait for the test to jump into the short, but the initial short is not bad. The 1m makes a bearish engulf at the top, but pulls up after crossing below 0, for another new high. This second high fully tests the 15m 21 with another 5m wave, and this is our ideal textbook wave/21 setup on the 5. This is the move that really sends the market down, running almost 400 points after this point until the EOD. The market ends up having 3 of these nearly identical juke/multiple short setups, but ultimately results in a massive crash if we were patient enough to wait for the right setup.
