Yellow circle: The market opens with a 5m gradually increasing MACD, tipping us off to the upward trend to come. 1m pulls up for about 100 points, and then pulls back to the 34, giving a bullish engulf right above the 0 line. Note that there is a bullish engulf that occurs just barely touching the 34 prior to this, and that fails. The second 7J bullish engulf is a better signal. Also note that the 5m bottom touches the 34 on its “immediate 34” pattern that I have been studying recently.
Orange circle: Almost two hours later, 1m makes its first real down wave, though it is still quite shallow, and spends some time below 0 before making a bullish hammer doji and bullish harami, the hammer doji just barely reaching the 5m 21 to make this a valid setup. This trade runs up for another 50+ points.
Purple circle: After the new high, the 5m fails again, this time coming back to the 34, but it does not contest the lows set by the 21. This is the final good long for the day, with a bullish engulf on the 5m, and we do not see the MACD cross 0 the entire morning since the opening spike.
