Nasdaq Intraday Review – Wednesday 24 Jan 2024
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.
Looking exclusively for a buy – “The trend is your friend”
Netflix earnings came in showing good forecasts
Risk for the day was that there may be hesitancy for traders to step into the market, as we wait for Tesla to report.
At time of analysis I noted the following:
Temporary pink downtrend line had been broken and retested at A. (also retest of pivot).
Candles showing strong bull presence in the market (green momentum candles on 1H and 4H candles are all green).
Rising wedge formation noted and marked in green lines
1H 20 EMA is tracking the dark blue trend line almost perfectly
If market retraces, I would enter a buy with my full position size.
Watching price action, I entered a buy at C. (at 20% of my usual position size). Confirmations:
Market Pattern – Rising wedge formation formed on the 1H TF. Usually this pattern breaks to the downside but can break either way. Market broke to the upside this time.
News – Netflix earning release + forecast were really good
This was an aggressive entry – lack of strong confirmations. I usually don’t like buying at the peak, hence my small position size.
But market sentiment was extremely bullish. Market pushed up, broke through the top line of the Day ascending wedge (marked in light blue), retested at E. and took off from there.
Ultimately market moved up 1800 pips from my position.
Logically I would have liked to close half my position size at the peak and leave the rest running in case Tesla earnings came out well and market moved further up. However, candles did not give a clear reversal pattern on the lower TF and by the time it did, the monetary value was not significant enough for me to actually take profit.
I decided that because it was such an aggressive entry, that I might as well be aggressive and keep the whole position open and see what Tesla earnings does.
Unfortunately for me, market came crashing down and I was out at entry with ZERO pips for the day.
What could I have done differently:
At the time market reversed, I was no longer in front of my trading screens and was monitoring on my phone. My ability to judge and “feel” a shift in sentiment from the price action is significantly reduced. I think that if I was in front of my screens I would have taken partial profits, but we can’t be in front of the screens 24/7.
Ultimately, I will never regret a situation where I decide to be aggressive and then am out at entry. If Telsa had come out differently I would have been smiling all the way to the bank, so, happy to have taken that “go big or go home” risk.
Hope you made some good bucks out of this move!
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.
Looking exclusively for a buy – “The trend is your friend”
Netflix earnings came in showing good forecasts
Risk for the day was that there may be hesitancy for traders to step into the market, as we wait for Tesla to report.
At time of analysis I noted the following:
Temporary pink downtrend line had been broken and retested at A. (also retest of pivot).
Candles showing strong bull presence in the market (green momentum candles on 1H and 4H candles are all green).
Rising wedge formation noted and marked in green lines
1H 20 EMA is tracking the dark blue trend line almost perfectly
If market retraces, I would enter a buy with my full position size.
Watching price action, I entered a buy at C. (at 20% of my usual position size). Confirmations:
Market Pattern – Rising wedge formation formed on the 1H TF. Usually this pattern breaks to the downside but can break either way. Market broke to the upside this time.
News – Netflix earning release + forecast were really good
This was an aggressive entry – lack of strong confirmations. I usually don’t like buying at the peak, hence my small position size.
But market sentiment was extremely bullish. Market pushed up, broke through the top line of the Day ascending wedge (marked in light blue), retested at E. and took off from there.
Ultimately market moved up 1800 pips from my position.
Logically I would have liked to close half my position size at the peak and leave the rest running in case Tesla earnings came out well and market moved further up. However, candles did not give a clear reversal pattern on the lower TF and by the time it did, the monetary value was not significant enough for me to actually take profit.
I decided that because it was such an aggressive entry, that I might as well be aggressive and keep the whole position open and see what Tesla earnings does.
Unfortunately for me, market came crashing down and I was out at entry with ZERO pips for the day.
What could I have done differently:
At the time market reversed, I was no longer in front of my trading screens and was monitoring on my phone. My ability to judge and “feel” a shift in sentiment from the price action is significantly reduced. I think that if I was in front of my screens I would have taken partial profits, but we can’t be in front of the screens 24/7.
Ultimately, I will never regret a situation where I decide to be aggressive and then am out at entry. If Telsa had come out differently I would have been smiling all the way to the bank, so, happy to have taken that “go big or go home” risk.
Hope you made some good bucks out of this move!
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