Open
Day
Trades
Before beginning, note the white box. 4H is coming off the 34 immediately after crossing 0 line, so we expect a powerful burst. 1H is coming off the 34 during pre-open, so the direction is known to be down. 15m MACD histogram is decreasing, and 5m is already starting its down wave. All of these point to a strong downward morning.
- Purple circle: After 1m pulls up for an Upwave and starts dropping off, there is no short signal immediately, but a pullup to the 34 provides a short for a new low. This trade is not incredible but it is a working set up and can be taken.
- Yellow circle: After the new low, 1m makes a few bullish signals along the 5m 34, which happens to be the first 5m 34 touch and therefore it explodes to a new high. This set up is valid but the context is not the best, because we have short setups prior to it. It is debatable whether this long should be taken each time, because the new high does not seem guaranteed here.
- Purple box: 1m makes an immediate short signal at the new high which continues the short context set up before the market open. After this short, it will set a new low but 7:00 news came into play.
- Not marked, but shortly before the yellow box: The 1m made a non-sig harami 7J candle before news, sending it up for another sharp pull up against the 34. This long is debatable but definitely very easy. Profit could be taken right at the 34.
- Yellow box: After the 34, the 1m makes a bullish gravestone doji which is the reversal for the news short. Took this trade but did not hold for the bigger picture trend.
- Blue box: Another short entry for this strategy, 5m pulls up to the 34 shortly after it has crossed below 0, and 1m makes some great bearish signals and another pullup to the 1m 34/weak wave pullup for a final, lower 1m short entry.
- Orange circle: 1m coming off a down wave and 5m 21 sets up another bearish setup. After this, 1m comes off the 34/wave again, but not with 5m 21 or 34, so these are optional at this point. When taking one of these immediate 34 tests after the down wave but no 5m level, take profit immediately or after first exit signal on 1m.