Yellow circle: Bearish harami 7J on 1m just before the open, sets up the opening drop below the relative lows. However, it reverses almost immediately. Not the best trade, but direction long term is obvious.
Orange circle: News comes at 7:00 and reverses at the lows, which is our sign that we should reverse the rest of the day at some point. 1m doesn’t make a great entry, with a big body bullish engulfing off the low, but makes a better bullish inverted hammer harami on a fake 34 setup shortly after. This can be held til the highs.
Purple circle: 1m comes back down for a 34 test, though it’s a bit tricky. Bullish harami comes first, then fails to a steep single candle drop (stop breaker) and reversal. This coincides with an unideal 5m fake 34 rejection, but it still works as expected.
Blue circle: After 5m breaks the opening highs and peters out, it starts falling back down, but takes forever to get back to pre-news levels. 1m makes a bearish harami spinning top 7J here as the first somewhat 34 test, though it fails at first to reverse strictly off the 34. This takes it to new lows, and then it immediately comes back up again. Something to note: the 15m bearish candle off the 34 is extremely steep, and perhaps this is why it tried to come back up, as if it’s in between a straightforward 34 and a fake 34 rejection. It wants to come down, but the initial rejection is too steep to be real. However, 15m sometimes does reverse off the 34 quickly, due to the market being so strong at the moment. So this is very difficult and a rare situation to evaluate.
Yellow box: 1m coming off the 34 after its first extended pullup and 5m pullup, before going lower. Bearish harami on the 34 just getting stacked, and this runs the rest of the day relatively safely.
Orange box: 1m pulls up multiple times for shallow waves as the market makes its way lower, and sets up several good entries just before the final EOD push. It still does not completely finish the news move, but gets very close.
