White circle: Market opens with a bullish engulf and 5m 34 spike, and then immediate reversal. Our first trade doesn’t set up until after 8:00, where 1m makes a tricky bearish engulf hanging man which only turns into wave B. We might think this trade is working off the 5m 34, but the MACD is on its way up on 5m, for an almost pull-up. Really hard to gauge why this one failed.
Yellow circle: At 9:00, we get a massive drop on the 1m after a bearish gravestone non-sig non-7J creates a single candle that tanks through the lows. This seems like an algorithm simply shorted a massive amount. Either way, this trade is the first real 1m wave with a bearish harami 7J on the 5m as well. Playing for the immediate low and getting out would be difficult in the moment, but off of such a fast candle, it’s better to do that.
Orange circle: After 1m comes back above 0, we get a bearish engulfing non-7J along hte 7, with another 7J on the 5m but non-sig. This is the 5m’s last attempt to get over 0, and it can’t, and then the downtrend runs all the way til EOD.
