Yellow circle: 1m opens with an easy bearish move down into a bullish divergence on MACD, with a perfect 1m bullish harami 7J. This runs to just about the relative highs, for over 100 points.
Orange circle: Shortly after the spike, 1m pulls back for a 5m fake 34 rejection move. This barely escapes the 0 line, and makes a double bottom but non-sig bullish close. Can be debatable on whether to skip based on the candle, but knowing it’s a 5m 34 rejection, we may take this because of the 7J.
Purple circle: Shortly after, 1m makes another test along the 34, with multiple candles that aren’t great but ultimately a few bullish harami non-7J’s that can be trusted here. With the 5m being as bullish as it is, we also get a single 5m candle testing the 34 before the market takes off to new highs.
Blue circle: After 5m fails, we get another potential 5m 34 rejection on the way down. This time, 1m makes a better bearish double engulf pattern on the 34, and then collapses.
Yellow box: We get another test of the 34, this time barely above the 0 line, as 1m falls off again for new lows.
Orange box: Note that we get a barely failed new low after this drop, which stops short of the previous day’s close. Then, on the way back up, 1m makes some non-sig non-7J candles along the 34, with a sharp bullish trend developing finally on 15m. This coincides with the 1H 34, so it’s a stronger push than earlier, and gets to new highs before EOD. It’s important to recognize the 1H 34 in this moment because the candle is great, and helps to confirm to stay in the long until the high.
