I trade Nasdaq intraday exclusively
Trading in GMT time zone
Sharing my post day review & analysis in case it can help you :)
After yesterday’s volatility, I knew that today’s PPI would be important for investors.
As the day progressed a double top formed on the 1H TF and a head and shoulders formed on the 4H TF, both sharing the same neckline.
The pivot had been holding as strong support on a few occasions, but the bearish mood in the market/price action was tangible.
Usually I am looking for a buy only, but after yesterday’s CPI I decided to go with what the candles were telling me.
I took a sell at A. as price started breaking through the pivot point – Confirmations:
- Market pattern – 4H head and shoulders, as well as 1H double top had formed and neckline was broken
- Candlesticks: Bulls were failing to break through the resistance at the level indicated by the hand. Four failed attempts had been made.
- Fib: Candles were failing to move higher roughly at the 0.618 1H fib level
- Trend: There was a temporary downtrend line marked in green
- S&R: The pivot point was starting to fail as a support.
Took a small position as it was before the PPI and this news release could change market bias.
Market moved about 520 pips from my position and I secured at entry.
Ultimately price moved back up and I was out at entry.
Price reversing at B. was due to this area being one of strong confluences:
- Fib: 0.05 buy fib level (fib drawn from swing low at C. to swing high at D.)
- Price had travelled down exactly the same distance as the height of the market pattern
- S&R: The 4H 20 EMA was at this level at the time and provided dynamic support.
This is exactly why I always keep my bias the same as the overall trend because the biggest moves of the day come in the direction of the trend. The sell I took was 520 pips. The buy that came from B. was 1700 pips. Take profit from this buy would have been easy as it hit TP1, so I would have closed a portion of my position and left the rest running.
Its frustrating because if I had kept my bias as a buy I definitely would have taken the buy at B. because I like being part of the retest of the neckline that is in the same direction of the overall trend (still bullish, even after yesterday's CPI).
But it was a weird day today for me after CPI, market was choppy - so I guess not too bad if I come out with nothing and live to trade another day.
Have a great weekend!
What could I have done differently:
Kept my bias as a 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 :)
After yesterday’s volatility, I knew that today’s PPI would be important for investors.
As the day progressed a double top formed on the 1H TF and a head and shoulders formed on the 4H TF, both sharing the same neckline.
The pivot had been holding as strong support on a few occasions, but the bearish mood in the market/price action was tangible.
Usually I am looking for a buy only, but after yesterday’s CPI I decided to go with what the candles were telling me.
I took a sell at A. as price started breaking through the pivot point – Confirmations:
- Market pattern – 4H head and shoulders, as well as 1H double top had formed and neckline was broken
- Candlesticks: Bulls were failing to break through the resistance at the level indicated by the hand. Four failed attempts had been made.
- Fib: Candles were failing to move higher roughly at the 0.618 1H fib level
- Trend: There was a temporary downtrend line marked in green
- S&R: The pivot point was starting to fail as a support.
Took a small position as it was before the PPI and this news release could change market bias.
Market moved about 520 pips from my position and I secured at entry.
Ultimately price moved back up and I was out at entry.
Price reversing at B. was due to this area being one of strong confluences:
- Fib: 0.05 buy fib level (fib drawn from swing low at C. to swing high at D.)
- Price had travelled down exactly the same distance as the height of the market pattern
- S&R: The 4H 20 EMA was at this level at the time and provided dynamic support.
This is exactly why I always keep my bias the same as the overall trend because the biggest moves of the day come in the direction of the trend. The sell I took was 520 pips. The buy that came from B. was 1700 pips. Take profit from this buy would have been easy as it hit TP1, so I would have closed a portion of my position and left the rest running.
Its frustrating because if I had kept my bias as a buy I definitely would have taken the buy at B. because I like being part of the retest of the neckline that is in the same direction of the overall trend (still bullish, even after yesterday's CPI).
But it was a weird day today for me after CPI, market was choppy - so I guess not too bad if I come out with nothing and live to trade another day.
Have a great weekend!
What could I have done differently:
Kept my bias as a 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