I trade Nasdaq intraday exclusively
Trading in GMT time zone
Sharing my post day review & analysis in case it can help you :)
Did my analysis at +- 5:20am GMT
Looking exclusively for a buy, as Nasdaq is bullish overall – “The trend is your friend”.
Navy blue trend line indicating just how steep and bullish the current trend is. Even though we are at all-time highs, I keep my bias as a buy because up until now Nasdaq is giving all the confirmations for a buy.
At the time of my analysis, I noted the following:
The early morning market had already closed a 4H candle in green at D. on the 4H TF. – meaning buyers were already resisting a bearish push down from Nasdaq all-time high.
1H EMA and pivot point were below candles, giving bullish push up.
30min EMA had been acting as dynamic support (as seen on the 30min chart). Nasdaq respects 30min EMA when the market is very bullish.
Long wick candle had already touched the 4H 0.382 fib retracement level (also at D.) and market had moved up from there.
Entered a buy at C. – Confirmations:
Market Pattern – break of the neckline of the double bottom
Fib – shallow retracement (0.382) on high time frame reached i.e. 4H TF with swing low at A. and swing high at B.
Candlesticks – long wick candle rejecting 0.382 area
S&R – 30min EMA providing dynamic support
Mental stop placed below the thick pink line – this area represents a 4H 0.618 retracement, the seller’s TP2 and a previously very strong resistance level, now turned support. So if candles start closing below this point then the buy is invalidated.
Entering a buy at C. was poor form and represented lack of concentration on my part. In my opinion, this does not represent a double bottom and there was no break of the neckline at C. If you change the 1H chart to a line chart you will not see a clear double bottom. Clearly, I had not had my morning coffee before executing this buy.
The correct place to execute a buy would have been at E. This is where a double top had formed on the 1H TF and the market had moved down the same distance as the height of the market pattern. At E. there was strong support + a re-test of the neckline of the double top in the same direction as the overall trend. So, I was 150 pips from where I wanted to be. Not a big issue but still…irritating.
Market moved up, tested the very temporary down trend (marked in yellow) with a 1H red candle and market open saw a 1H and 4H candle close just a above the Nasdaq all-time high. Unbelievable.
Decided to take partial profit (30% of my total position size) at the purple dot because the blue trend line represents the top of a rising wedge chart pattern on the D chart. So +- 650 pips profit.
Leaving the rest to run and will judge take profit on the price action.
But plan is to take 20% more partial profit at TP1 and let the rest run. Otherwise I will be out at entry.
I would have entered 2 more positions at the orange dot because of the 1H EMA + Pivot + 0.382 fib level and I would have held to a draw down till the 4H 0.618 because it was only +- 320 pips down, so not far to go.
Good luck if you are still trading – hope you caught the buy! :)
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support and resistance
EMA = exponential moving average
Trading in GMT time zone
Sharing my post day review & analysis in case it can help you :)
Did my analysis at +- 5:20am GMT
Looking exclusively for a buy, as Nasdaq is bullish overall – “The trend is your friend”.
Navy blue trend line indicating just how steep and bullish the current trend is. Even though we are at all-time highs, I keep my bias as a buy because up until now Nasdaq is giving all the confirmations for a buy.
At the time of my analysis, I noted the following:
The early morning market had already closed a 4H candle in green at D. on the 4H TF. – meaning buyers were already resisting a bearish push down from Nasdaq all-time high.
1H EMA and pivot point were below candles, giving bullish push up.
30min EMA had been acting as dynamic support (as seen on the 30min chart). Nasdaq respects 30min EMA when the market is very bullish.
Long wick candle had already touched the 4H 0.382 fib retracement level (also at D.) and market had moved up from there.
Entered a buy at C. – Confirmations:
Market Pattern – break of the neckline of the double bottom
Fib – shallow retracement (0.382) on high time frame reached i.e. 4H TF with swing low at A. and swing high at B.
Candlesticks – long wick candle rejecting 0.382 area
S&R – 30min EMA providing dynamic support
Mental stop placed below the thick pink line – this area represents a 4H 0.618 retracement, the seller’s TP2 and a previously very strong resistance level, now turned support. So if candles start closing below this point then the buy is invalidated.
Entering a buy at C. was poor form and represented lack of concentration on my part. In my opinion, this does not represent a double bottom and there was no break of the neckline at C. If you change the 1H chart to a line chart you will not see a clear double bottom. Clearly, I had not had my morning coffee before executing this buy.
The correct place to execute a buy would have been at E. This is where a double top had formed on the 1H TF and the market had moved down the same distance as the height of the market pattern. At E. there was strong support + a re-test of the neckline of the double top in the same direction as the overall trend. So, I was 150 pips from where I wanted to be. Not a big issue but still…irritating.
Market moved up, tested the very temporary down trend (marked in yellow) with a 1H red candle and market open saw a 1H and 4H candle close just a above the Nasdaq all-time high. Unbelievable.
Decided to take partial profit (30% of my total position size) at the purple dot because the blue trend line represents the top of a rising wedge chart pattern on the D chart. So +- 650 pips profit.
Leaving the rest to run and will judge take profit on the price action.
But plan is to take 20% more partial profit at TP1 and let the rest run. Otherwise I will be out at entry.
I would have entered 2 more positions at the orange dot because of the 1H EMA + Pivot + 0.382 fib level and I would have held to a draw down till the 4H 0.618 because it was only +- 320 pips down, so not far to go.
Good luck if you are still trading – hope you caught the buy! :)
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support and resistance
EMA = exponential moving average