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.
But I was considering just observing the market today as there is a fully formed Double top on a high TF (4H) + two red D candle closes + Nasdaq all-time highs.
Bears have just been waiting for the sell at all-time highs, but bulls have proven to be very strong over the last two months.
As the morning progressed, two double tops were forming on the 1H and 30min TF.
However, when a double bottom formed, I entered a small buy at A. – Confirmations:
- Market Pattern: Double bottom on the 1H TF. I entered my buy on the break of the neckline on the 30min TF
- Trend line: Break of the temporary down trend line (marked in blue)
- Fib: Double bottom formed at D 0.382 retracement level
- Candle sticks: Long wick candles on the 4H TF
Entered a position which is 20% of my usual position size, as I knew this was a risky entry (all EMA's + pivot point above my buy pushing down).
Set a tight mental stop loss, marked by the thick pink line. If candles started closing below this point then neckline of the 1H double bottom was broken and market would sell.
Bears pushed down and I took a 250 pips loss.
Entered a buy at B. – Confirmations:
S&R: Strong D level support and resistance
S&R: D 20 EMA was at this level
Fib: Bigger picture 0.382 D fib level
I knew there should at least be a bounce at this level and I entered a small buy.
I secured at entry after the market was +-250 pips up from my position, so I was trading risk free. Ultimately, market moved 850pips up from my position.
I was expecting a bigger move up to at least the 30min EMA but market turned around quite unexpectedly (for me at least) and I was out at entry. This is also the time of day that I am not in front of my trading screens and I was monitoring periodically on my phone.
What could I have done differently:
I could have jumped on the sell train, but generally I don’t like to flip flop between biases. I have lost a lot of money in doing that and trading with the overall trend has become part of my trading rules. This massive bearish move may be a bigger TF retracement or it may be a trend reversal.
Let’s see what the market has in store for us today.
Hope you caught the sell!
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.
But I was considering just observing the market today as there is a fully formed Double top on a high TF (4H) + two red D candle closes + Nasdaq all-time highs.
Bears have just been waiting for the sell at all-time highs, but bulls have proven to be very strong over the last two months.
As the morning progressed, two double tops were forming on the 1H and 30min TF.
However, when a double bottom formed, I entered a small buy at A. – Confirmations:
- Market Pattern: Double bottom on the 1H TF. I entered my buy on the break of the neckline on the 30min TF
- Trend line: Break of the temporary down trend line (marked in blue)
- Fib: Double bottom formed at D 0.382 retracement level
- Candle sticks: Long wick candles on the 4H TF
Entered a position which is 20% of my usual position size, as I knew this was a risky entry (all EMA's + pivot point above my buy pushing down).
Set a tight mental stop loss, marked by the thick pink line. If candles started closing below this point then neckline of the 1H double bottom was broken and market would sell.
Bears pushed down and I took a 250 pips loss.
Entered a buy at B. – Confirmations:
S&R: Strong D level support and resistance
S&R: D 20 EMA was at this level
Fib: Bigger picture 0.382 D fib level
I knew there should at least be a bounce at this level and I entered a small buy.
I secured at entry after the market was +-250 pips up from my position, so I was trading risk free. Ultimately, market moved 850pips up from my position.
I was expecting a bigger move up to at least the 30min EMA but market turned around quite unexpectedly (for me at least) and I was out at entry. This is also the time of day that I am not in front of my trading screens and I was monitoring periodically on my phone.
What could I have done differently:
I could have jumped on the sell train, but generally I don’t like to flip flop between biases. I have lost a lot of money in doing that and trading with the overall trend has become part of my trading rules. This massive bearish move may be a bigger TF retracement or it may be a trend reversal.
Let’s see what the market has in store for us today.
Hope you caught the sell!
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