Yellow circle: 1m opens running down, so we expect a pull back with a wave. We get a good bullish engulfing along the 7 at first, but a better entry once it pushes lower aroudn 6:45. This could be a tough play because of the 2nd lower test. But both are not ideal candles.
Orange circle: 1m makes a wave B as 5m pulls back to the EMAs, and notice that the EMAs are unstacked for most of the day. We get a great bullish inverted hammer on 1m, that takes this to just above the high set from the earlier run. Hopefully, we are aware that the EMAs are bullshit by this point, and to thus take every trade to a break or 2 points before a break.
Blue circle: 1m makes a nice bearish engulfing top after the new high, though this is tough to call in the moment as a significant downward move. 5m makes a better 5m bearish candle close which is worth considering instead. This move does not break the day’s lows so we need to be able to exit at any 5m failure.
Purple circle: On the way down, 1m pulls above 0 for a wave, and makes a good bearish engulfing 7J after a bullish gravestone 7J, which coincides with a 5m weak pullup. This takes us lower and we can exit on the 5m bullish harami around 9:30 for the max profit. This purple circle trade should likely be taken on the break of the low at 9:15 however.
White box: Note the 1H white box showing there is no real trend established today.
