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 around 5:20am GMT.
At time of analysis, the following was noted:
A double top was forming on the 1H TF (marked with purple lines).
I knew that market would come down to test the neckline (marked in pink) of the D Double top that it broke through yesterday.
Drawing retracement levels in the charts in purple (swing low at A. and swing high at B.)
Noted that both the D 20 EMA and the 4H 20 EMA were close to the 4H – 0.382 retracement level. This created a strong area of confluence in my opinion (so I highlighted this area in yellow).
I set a buy limit at C. for half on my usual position size.
Mental stop was placed by the thick pink line, as this was also just below the 0.50 fib level so I would give my trade some breathing room in case market decided to test the 0.50 fib level.
Ultimately, market never reached my buy limit.
For me, today was a really important day for Nasdaq. If the bulls were not able to break the neckline of the D Double top that had formed previously, then we would see a further down swing of the market and a larger bearish pushdown.
With the candles, pivot point + EMAs + 0.382 retracement level below the neckline of the D double top (i.e. market had ALREADY broken below the D neckline), I felt unsure of a buy because the market was already in a risky area (below the neckline).
I entered a buy at D – Confirmations:
- Market Patterns: formation of double bottom on 1H TF. Entered when market had broken the neckline of the double bottom as well as the D neckline (marked in pink)
- Trend Line: D also represented the level where market had broken the temporary down trend line (marked in blue) and closed a higher high after a period of lower highs – signaling the end of the downtrend.
- Candlesticks: Strong green candle close on the 1H, breaking D Neckline
- Fib: Market had been down in the region of the 0.382 4H Fib retracement level and was now moving higher
Mental stop was the same.
Bulls continued the push up and eventually I closed my position in stages at E. as candles began consolidating at the level.
So that 933 pips profit for me today!
What could I have done differently:
I could have been more aggressive and entered at about F.
I already had a buy limit at C. so I was already willing to risk the buy from below the neckline at C. So when the double bottom started forming on the 15 min TF just above the level of my buy limit, I should have jumped in with my buy. But having to enter manually, I felt myself hesitating and being fearful that bears would step in at the neckline. Lesson to be learnt, if you have an ideal entry point where you set a buy / sell limit and then market forms a reversal pattern very close to your desired entry then jump in at that point and delete your pending order. If I had done that I would have had 511 extra pips in my pocket!
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 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 around 5:20am GMT.
At time of analysis, the following was noted:
A double top was forming on the 1H TF (marked with purple lines).
I knew that market would come down to test the neckline (marked in pink) of the D Double top that it broke through yesterday.
Drawing retracement levels in the charts in purple (swing low at A. and swing high at B.)
Noted that both the D 20 EMA and the 4H 20 EMA were close to the 4H – 0.382 retracement level. This created a strong area of confluence in my opinion (so I highlighted this area in yellow).
I set a buy limit at C. for half on my usual position size.
Mental stop was placed by the thick pink line, as this was also just below the 0.50 fib level so I would give my trade some breathing room in case market decided to test the 0.50 fib level.
Ultimately, market never reached my buy limit.
For me, today was a really important day for Nasdaq. If the bulls were not able to break the neckline of the D Double top that had formed previously, then we would see a further down swing of the market and a larger bearish pushdown.
With the candles, pivot point + EMAs + 0.382 retracement level below the neckline of the D double top (i.e. market had ALREADY broken below the D neckline), I felt unsure of a buy because the market was already in a risky area (below the neckline).
I entered a buy at D – Confirmations:
- Market Patterns: formation of double bottom on 1H TF. Entered when market had broken the neckline of the double bottom as well as the D neckline (marked in pink)
- Trend Line: D also represented the level where market had broken the temporary down trend line (marked in blue) and closed a higher high after a period of lower highs – signaling the end of the downtrend.
- Candlesticks: Strong green candle close on the 1H, breaking D Neckline
- Fib: Market had been down in the region of the 0.382 4H Fib retracement level and was now moving higher
Mental stop was the same.
Bulls continued the push up and eventually I closed my position in stages at E. as candles began consolidating at the level.
So that 933 pips profit for me today!
What could I have done differently:
I could have been more aggressive and entered at about F.
I already had a buy limit at C. so I was already willing to risk the buy from below the neckline at C. So when the double bottom started forming on the 15 min TF just above the level of my buy limit, I should have jumped in with my buy. But having to enter manually, I felt myself hesitating and being fearful that bears would step in at the neckline. Lesson to be learnt, if you have an ideal entry point where you set a buy / sell limit and then market forms a reversal pattern very close to your desired entry then jump in at that point and delete your pending order. If I had done that I would have had 511 extra pips in my pocket!
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 and resistance
EMA = exponential moving average