Nasdaq Intraday Review – Wednesday 20 Dec 2023
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
Looking exclusively for a buy, as Nasdaq is bullish overall – “The trend is your friend”
Navy blue trend line indicating just how steep and bullish the current trend is.
Interesting to see the 1H EMA matching the navy trend line almost perfectly.
The early morning market had pushed up since TP1 yesterday. A small double top had formed on the 1H TF and a red candle closed at 7am GMT on the 4H TF – this led me to believe a retracement might be in the works for today.
Decided I should enter my buy carefully with good confirmations (at least a break of the neckline of a double bottom market pattern), because at all-time highs the sellers are just waiting to jump in with a short.
Market came down strongly and started consolidating between the 50 and 61.8 Fib levels (fib drawn from swing low at A. and swing high at B. on the 4H TF).
I entered my buy at the break of the neckline of the double bottom that had formed on the 5min TF (indicated by the hand on the 15 min TF) – confirmations:
- Market pattern – break of the neckline of double bottom on 5min TF
- Fib – market hovering between the 0.5 and 0.618 fib level
- Trend line – not specifically respecting a trend line but buy in same direction as overall trend
- Candles - candles rejecting the 0.618 fib level with long wick candles on the 1H
- S&R – market consolidation near the brown line representing a resistance turned support level. Nasdaq re-testing this zone.
Mental stop loss placed at thick pink line. This was just below a strong 4H S&R zone and also the 0.618 fib level. So if candles started closing past this point then a sell would be in play and my buy would be invalidated.
Had multiple drawdowns and wondered if a 5min time frame to enter a buy was too small a TF. But stuck with my buy as my stop loss was not too far down and my loss would not be too big if stop loss hit.
Market open at 2:30pm GMT, introduced a strong bullish push and market rocketed up.
Secured my position at entry after market moved up +-250pips from my position. Then was trading risk free for the rest of the day.
The plan --> Wait for TP 1 to close half my position (if candles suggest weakness in this zone) and watch price action closely before closing the other half, hoping that market will rally.
The reality --> The 4H candle close at 7pm GMT failed to make a higher high from this morning. For me this was a bad sign and looked like it could be the peak of a second top on a double top market pattern on a very high TF (4H). So decided to close half my position at the orange dot.
Left the other half to run, but bears dominated with a massive push down, so I was out at entry.
Market moved about 950 pips from my buy and I took profit at about 600 pips.
What would I have done differently:
Feel like my trading was on point today, even though it wasn't the biggest pip profit, I am happy with my decisions and analysis.
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
Looking exclusively for a buy, as Nasdaq is bullish overall – “The trend is your friend”
Navy blue trend line indicating just how steep and bullish the current trend is.
Interesting to see the 1H EMA matching the navy trend line almost perfectly.
The early morning market had pushed up since TP1 yesterday. A small double top had formed on the 1H TF and a red candle closed at 7am GMT on the 4H TF – this led me to believe a retracement might be in the works for today.
Decided I should enter my buy carefully with good confirmations (at least a break of the neckline of a double bottom market pattern), because at all-time highs the sellers are just waiting to jump in with a short.
Market came down strongly and started consolidating between the 50 and 61.8 Fib levels (fib drawn from swing low at A. and swing high at B. on the 4H TF).
I entered my buy at the break of the neckline of the double bottom that had formed on the 5min TF (indicated by the hand on the 15 min TF) – confirmations:
- Market pattern – break of the neckline of double bottom on 5min TF
- Fib – market hovering between the 0.5 and 0.618 fib level
- Trend line – not specifically respecting a trend line but buy in same direction as overall trend
- Candles - candles rejecting the 0.618 fib level with long wick candles on the 1H
- S&R – market consolidation near the brown line representing a resistance turned support level. Nasdaq re-testing this zone.
Mental stop loss placed at thick pink line. This was just below a strong 4H S&R zone and also the 0.618 fib level. So if candles started closing past this point then a sell would be in play and my buy would be invalidated.
Had multiple drawdowns and wondered if a 5min time frame to enter a buy was too small a TF. But stuck with my buy as my stop loss was not too far down and my loss would not be too big if stop loss hit.
Market open at 2:30pm GMT, introduced a strong bullish push and market rocketed up.
Secured my position at entry after market moved up +-250pips from my position. Then was trading risk free for the rest of the day.
The plan --> Wait for TP 1 to close half my position (if candles suggest weakness in this zone) and watch price action closely before closing the other half, hoping that market will rally.
The reality --> The 4H candle close at 7pm GMT failed to make a higher high from this morning. For me this was a bad sign and looked like it could be the peak of a second top on a double top market pattern on a very high TF (4H). So decided to close half my position at the orange dot.
Left the other half to run, but bears dominated with a massive push down, so I was out at entry.
Market moved about 950 pips from my buy and I took profit at about 600 pips.
What would I have done differently:
Feel like my trading was on point today, even though it wasn't the biggest pip profit, I am happy with my decisions and analysis.
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