Yellow circle: This trade is poor in terms of candle quality, but the market is so weak pre-open, that we simply don’t get another chance if we pass up this 1m 34. AFter this, we have to wait and watch for a 200-250 point drop to pullback.
Orange circle: After the pullback, 5m stops perfectly at the 21 3 times, allowing the 1m to juke us out of our initial short if we short too early. The second orange circle has the high and a bearish 1m harami that we could short if we got out of the initial short. Textbook straight to the lows.
Purple circle: After another pullback, 1m makes a huge bearish gravestone non-sig 7J, and 5m is at the 21 yet again, causing another crash through the lows. Textbook again. Normally we don’t look for multiple wave/5m 21 setups but on a large trend, it may happen like this.
Blue circle: If we miss the 1m gravestone, we get a perfect bearish harami 7J on 1m shortly after, on an attempted pullup (doesn’t make it above 0).
Purple box: 5m makes a fake 34 rejection setup, and 1m comes off the 34 (non-sig bullish candle) to run through highs. This is optional because of the candle quality on 1m, but the setup is standard otherwise.
Yellow box: At the highs of this wave, 5m makes a bearish harami and looks to fail off of the 15m 21, but note that the 15m runs higher until it gets to the 34. At this high, the 5m makes a bearish non-sig 7J candle, but not as good as the first candle. The 1m makes a great bearish engulfing at this point, and we run straight down to another low.
Orange box: Toward the end of the day, we are running out of gas, and the 5m makes another fake 34 rejection setup, this time with a better 1m bullish inverted hammer and wave B at the same time. This runs quickly to make a 60-70 point trade.
