Open
Day
Trades
Important: Before taking trades, we noted the 15m purple circled MACD before the open, and we can see that there is no way for the market to go down until this wave is finished. After understanding this, we can play the whole day perfectly.
- Yellow circle: Market opens with 5m clearly running up for an upwave (purple circled MACD). 1m has some wild swings up and down but makes the first proper signal with a bullish engulf on its first downwave ~40 minutes after the open. This runs straight to the highs.
- Orange circle: At the top, after 5m has established above 0, 1 makes several bearish signals. These coalesce into the 15m bearish hanging man, and note that the 15m has stacked bearish the entire morning until its 7 fought hard against the trend during the 5m upwave. This sets up a massive drop, which comes with a 1m bearish harami spinning top and subsequent 7J non-sig bearish candles shortly after.
- Blue circle: After the massive drop, 5m levels off and pulls up again for a pullup. There aren’t any great signals at the bottom to set off the pullup, so we wait for the short. Once the 5m gets above 0, we have to note again the 15m bearish hanging man harami, because the 5m makes no sig-candles, and 1m is simply leveling off at the top. The 1m makes a perfect bearish engulf at the very top, which follows up with a pullup shortly after that doesn’t test the highs. This pullup is a sharp bullish candle and bearish harami 7J after, and is a perfect second entry.
- Yellow box: After falling for some time, the 5m pulls up to the 7 with a bullish engulf, as the 1m barely makes it above the 0 line during this down wave for the first time. Because it’s coming off of the 5m 7, I consider this trade optional, and less than ideal. There is no test off of the 21 to short on the 5, so this is it for the day. The day ends with a sharp reversal, coming off a 5m double bottom at the lows. Considering the shape and size of these candles at the bottom, it is optional as well.