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
Usually, I am looking exclusively for a buy because Nasdaq was bullish overall and trading with the trend is always a good idea.
Bears have totally dominated, with a push down of +- 7000 pips. I believe this is a big buy retracement on the D TF and am waiting for the reversal.
During my analysis, I noted the following:
A double bottom formed on the 1H TF (marked in purple lines).
Market pushed up to break the neckline of the double bottom & temporary down trend line (marked in light blue).
I entered a buy at A. – Confirmations:
- Market Pattern: This was the 1st time that a double bottom formed on the 1H TF since the bearish retracement, indicating the growing strength of the buyers. Entered at break of the neckline
- Fib: There was no buy fib level but there was some distance to travel to the 0.382 sell retracement (drawn at time I entered the buy and not as indicated on the chart now because swing low changed) so I felt there was enough distance for market to travel and secure my position at entry.
- Candle sticks: Strong 1H momentum candle + first time we saw 2 green candles in a row close on the 4H TF, again indicating the growing strength of bulls.
- S&R: Strong weekly and monthly support and resistance zone
It was a risky entry because the pivot + 1H EMA were just above pushing down, so I entered 50% of my usual position size.
Mental stop was place at thick pink line.
1H EMA proved too strong, and bulls were unable to break through. Took a 370 pip loss on this entry.
Not sad about it because I feel it was a valid entry and worth putting some money on the table for.
Bears push down further. Towards market open price was approaching the 4H 200 EMA (a very strong dynamic support zone) + the profit target of the D TF double top (marked by C. in bottom left corner – i.e., market will generally move the same distance as the height of the market pattern).
When a double bottom formed on the 15min TF in this zone, I was very interested to enter a buy.
However, just yesterday I said in my post “It’s ridiculous of me to think that its enough confirmation to enter a buy on a 15min TF (a very small TF). A 6000 pip bearish move will not come to a screaming halt on a 15min double bottom.”
The difference now was that this pattern was forming in an area of confluence as opposed to just a random 15min double bottom anywhere in the charts.
I chose to wait for the re-test of the neckline and entered a buy at B. as market was moving up again – Confirmations:
- Market pattern: retest of broken neckline of a double bottom of the 15min chart
- Fib: in the 0.50 fib zone on a D TF
- Candlestick: inverted green hammer candlestick on the 1H (a potential bullish reversal signal)
- S&R: in the zone of the 4H 200 EMA (a very strong EMA)
- Trendline: none
Mental stop was placed at thick pink line.
I also placed a buy limit at the thick pink line as I really believed a bullish bounced would occur from this zone.
Finally hit a nice buy with market moving up 1000 pips from my entry.
Wanting to see a strong move up, I secured my position at entry and am trading risk free.
What could I have done differently:
I should have taken profit (closed a portion of my position at D.)
D. represents the 5th time market tried to break this zone and on seeing weakness on the 15min TF, I should have secured some profit.
Good luck if you are still trading!
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
Usually, I am looking exclusively for a buy because Nasdaq was bullish overall and trading with the trend is always a good idea.
Bears have totally dominated, with a push down of +- 7000 pips. I believe this is a big buy retracement on the D TF and am waiting for the reversal.
During my analysis, I noted the following:
A double bottom formed on the 1H TF (marked in purple lines).
Market pushed up to break the neckline of the double bottom & temporary down trend line (marked in light blue).
I entered a buy at A. – Confirmations:
- Market Pattern: This was the 1st time that a double bottom formed on the 1H TF since the bearish retracement, indicating the growing strength of the buyers. Entered at break of the neckline
- Fib: There was no buy fib level but there was some distance to travel to the 0.382 sell retracement (drawn at time I entered the buy and not as indicated on the chart now because swing low changed) so I felt there was enough distance for market to travel and secure my position at entry.
- Candle sticks: Strong 1H momentum candle + first time we saw 2 green candles in a row close on the 4H TF, again indicating the growing strength of bulls.
- S&R: Strong weekly and monthly support and resistance zone
It was a risky entry because the pivot + 1H EMA were just above pushing down, so I entered 50% of my usual position size.
Mental stop was place at thick pink line.
1H EMA proved too strong, and bulls were unable to break through. Took a 370 pip loss on this entry.
Not sad about it because I feel it was a valid entry and worth putting some money on the table for.
Bears push down further. Towards market open price was approaching the 4H 200 EMA (a very strong dynamic support zone) + the profit target of the D TF double top (marked by C. in bottom left corner – i.e., market will generally move the same distance as the height of the market pattern).
When a double bottom formed on the 15min TF in this zone, I was very interested to enter a buy.
However, just yesterday I said in my post “It’s ridiculous of me to think that its enough confirmation to enter a buy on a 15min TF (a very small TF). A 6000 pip bearish move will not come to a screaming halt on a 15min double bottom.”
The difference now was that this pattern was forming in an area of confluence as opposed to just a random 15min double bottom anywhere in the charts.
I chose to wait for the re-test of the neckline and entered a buy at B. as market was moving up again – Confirmations:
- Market pattern: retest of broken neckline of a double bottom of the 15min chart
- Fib: in the 0.50 fib zone on a D TF
- Candlestick: inverted green hammer candlestick on the 1H (a potential bullish reversal signal)
- S&R: in the zone of the 4H 200 EMA (a very strong EMA)
- Trendline: none
Mental stop was placed at thick pink line.
I also placed a buy limit at the thick pink line as I really believed a bullish bounced would occur from this zone.
Finally hit a nice buy with market moving up 1000 pips from my entry.
Wanting to see a strong move up, I secured my position at entry and am trading risk free.
What could I have done differently:
I should have taken profit (closed a portion of my position at D.)
D. represents the 5th time market tried to break this zone and on seeing weakness on the 15min TF, I should have secured some profit.
Good luck if you are still trading!
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