Nasdaq Intraday Review – Wednesday 7 Feb 2024
I trade Nasdaq intraday exclusively
Trading in GMT time zone
Sharing my post day review and analysis in case it can help you!
Did my analysis at +- 5:20am
During analysis noted the following:
The 4H EMA has acted as a strong support for 2 x 4H candles (marked at A.)
The D neckline (you see it better on the line chart) that was previously broken down and re-tested by market, is resistance turned support & is acting as a strong support
Trend is clearly uptrend - nearly seen from D line chart
Looking exclusively for a buy - The trend is your friend
Entered a sell (even though I just said I was looking for buys ;) ) at B -
Confirmations:
- Market Patterns - Market had broken the 4H neckline marked in pink, travelled down the same distance as the height of the pattern i.e. reach profit target and was now returning to test the neckline. The early morning bulls had pushed past the neckline but met bear resistance at C. It looked as if bears had won the battle as price was pushed below 1H + 30min EMA + pivot point at E. So even though I was looking for a buy, I believed market would sell as neckline failed the bull re-test
- Candlesticks - Strong bear momentum candles between E. and B. on 15min through to 1 H TF
- Fib - Point C. was at the seller's 0.618 fib retracement level and market was moving aggressively down
- S&R - Pivot point had failed as support and 30min + 1H EMA was acting as resistance
- Trendline - This was against the trend but I looked to me like a trend change in progress
The 4H EMA + the red support line of the "D Neckline " was too strong for bears to break down and ultimately market moved up from here.
I closed at my mental stop, which was the thick pink line, taking a loss of 445 pips.
Usually I would have been discouraged that my first entry for the day did not work out. Usually, self-doubt creeps in and I become very insecure and hesitant.
Today, I was determined not to let that happen and keep my mental state as level as possible.
Watching price action carefully and needing to be convinced that market had indeed properly broken through the neckline, I entered a buy at D. -
Confirmations:
- Market Pattern - My initial reason for selling is not turned around so, price seemed to have convincingly broken through the neckline, meaning that the down trend was over and an uptrend would begin
- Fib - Point B. was at the buyers 0.50 fib level, representing a strong fib level
- Candlesticks - I opened a buy after a very long wick green hammer candle closed on the 15min TF. This represented market testing the pivot point one last time with a big rejection.
- S&R - The 30min + 1H EMAs + pivot had turned into support
- Trend - Trading with the overall trend which usually tends to be my most profitable trades. Also the orange temporary down trend had been broken
Usually when self-doubt creeps in, I tend to open very small positions in an attempt not to increase my losses for the day. But this time I opened at my full position size.
As market moved up, I closed partial profits to cover my losses for the day and still have a runner open which I will close as per what the candles are saying.
Market has moved 1886 pips from my position, I am trading risk free (stop loss at entry) with my losses covered for the day.
So I am a happy chappy!
Ultimately I closed my position at 17739, when a double top started forming on the 30 min.
What could I have done differently?
I had analysed in the morning that the 4H EMA and the red slanted support line were very strong, but I choose to ignore that when I entered my sell as price was right at this level.
I should have waited to see how price would react to these strong elements before jumping in.
Hope you caught this nice buy!
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
EMA = Exponential moving average
Trading in GMT time zone
Sharing my post day review and analysis in case it can help you!
Did my analysis at +- 5:20am
During analysis noted the following:
The 4H EMA has acted as a strong support for 2 x 4H candles (marked at A.)
The D neckline (you see it better on the line chart) that was previously broken down and re-tested by market, is resistance turned support & is acting as a strong support
Trend is clearly uptrend - nearly seen from D line chart
Looking exclusively for a buy - The trend is your friend
Entered a sell (even though I just said I was looking for buys ;) ) at B -
Confirmations:
- Market Patterns - Market had broken the 4H neckline marked in pink, travelled down the same distance as the height of the pattern i.e. reach profit target and was now returning to test the neckline. The early morning bulls had pushed past the neckline but met bear resistance at C. It looked as if bears had won the battle as price was pushed below 1H + 30min EMA + pivot point at E. So even though I was looking for a buy, I believed market would sell as neckline failed the bull re-test
- Candlesticks - Strong bear momentum candles between E. and B. on 15min through to 1 H TF
- Fib - Point C. was at the seller's 0.618 fib retracement level and market was moving aggressively down
- S&R - Pivot point had failed as support and 30min + 1H EMA was acting as resistance
- Trendline - This was against the trend but I looked to me like a trend change in progress
The 4H EMA + the red support line of the "D Neckline " was too strong for bears to break down and ultimately market moved up from here.
I closed at my mental stop, which was the thick pink line, taking a loss of 445 pips.
Usually I would have been discouraged that my first entry for the day did not work out. Usually, self-doubt creeps in and I become very insecure and hesitant.
Today, I was determined not to let that happen and keep my mental state as level as possible.
Watching price action carefully and needing to be convinced that market had indeed properly broken through the neckline, I entered a buy at D. -
Confirmations:
- Market Pattern - My initial reason for selling is not turned around so, price seemed to have convincingly broken through the neckline, meaning that the down trend was over and an uptrend would begin
- Fib - Point B. was at the buyers 0.50 fib level, representing a strong fib level
- Candlesticks - I opened a buy after a very long wick green hammer candle closed on the 15min TF. This represented market testing the pivot point one last time with a big rejection.
- S&R - The 30min + 1H EMAs + pivot had turned into support
- Trend - Trading with the overall trend which usually tends to be my most profitable trades. Also the orange temporary down trend had been broken
Usually when self-doubt creeps in, I tend to open very small positions in an attempt not to increase my losses for the day. But this time I opened at my full position size.
As market moved up, I closed partial profits to cover my losses for the day and still have a runner open which I will close as per what the candles are saying.
Market has moved 1886 pips from my position, I am trading risk free (stop loss at entry) with my losses covered for the day.
So I am a happy chappy!
Ultimately I closed my position at 17739, when a double top started forming on the 30 min.
What could I have done differently?
I had analysed in the morning that the 4H EMA and the red slanted support line were very strong, but I choose to ignore that when I entered my sell as price was right at this level.
I should have waited to see how price would react to these strong elements before jumping in.
Hope you caught this nice buy!
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
EMA = Exponential moving average