Purple circle: The 5m opens up with a big candle but ultimately pushing upward. This is a 5m fake 34 rejection that we are unable to take because of a lack of signal right at the open. However, the structure is somewhat obvious, so we should be looking for a long on this day, if it came, shortly after the open. It doesn’t.
Yellow circle: After the market runs up for some time, it slows down but doesn’t really come down at all during this day. The yellow circled areas are the 1m coming off the 34, without a 5m 21 or 34 to support it, but it is a weak first wave on the 1m as well, and produces a new high nearly immediately. This is worth about 60 points, worth considering, but ultimately optional because of how the day started. Later, the 1m tests 34 again after the new high, and continues higher.
Orange circle: The first proper setup comes with the 1m down wave and 5m 21. This sets up what should be a new high, but the 5m stalls on the 21 so many times, and the MACD is consistently dropping at this point, so the new high doesn’t come, and instead a 5m down wave comes first. In addition, the 1m doesn’t make a clear buy signal at the low, and has a bullish engulf that penetrates the 7 rather than any sig-candle 7J. This is a bit tricky, because it counts as a wave/21 setup, but the market context is just not right for a new high yet.
Blue circle: The 5m makes a slight down wave for the first time of the day since the open, and this move can also be considered a 34 test because it’s only one candle below the 34 before it reverses completely. This bullish harami is the best setup/signal for the day, and takes it to the new high immediately in the next 5 5m candles. Overall, a low profit day if sticking to the system, but not too difficult or fast.
