Yellow circle: After a clear 5m bearish top has been made, 1m makes a bullish signal before the open, sending the market to a new high momentarily. The 1m bearish engulfs shortly after, non-7J, but this is the best time to get in for the real move. We can make about 200 points on this move.
Purple circle: After the 5m runs out of gas and forms a bullish spinning top non-sig 7J, 1m gradually pulls up on the MACD. Note that the 1m reaches 34 for the first time, but does not fall into a new low. Instead, it makes a fake 34 rejection that turns into a runner. This coincides with the 5m almost coming to the 34, pulling back like its own fake 34 rejection, and then exploding upward for over 300 points from that level. Our best entry is a bullish engulfing non-7J along the 1m 34 just after it gets over the 0 line. If this were a 34 rejection, we would note that the 1m did not have a full wave B.
Blue circle: Note also that the 15m MACD is rising before open, telling us the move overall is higher. On the other hand, the 4H is very bearish, so it cannot run up forever either. We get a strong push above the highs, and a second push from the 5m 7, which we can take with a bullish engulfing 1m candle on its first downwave during this bullish run. After this high, the market tops.
Orange circle: On the way down, the 5m makes a fake 34 rejection, resulting in a 1m wave, and second wave shortly after. The second wave provides a valid bearish harami 7J candle entry, which the first top did not. 5m closes with a non-sig bearish hanging man here, and the market collapses to EOD.
Yellow box: Late in the day we get a 1m bearish engulfing 7J candle, which coincides with a perfect 5m bearish gravestone doji harami 7J on the 34. Superb setup, but late in the day, and doesn’t finish its full move until the overnight session.
