Nasdaq Intraday Review – Wednesday 17 Jan 2024
I trade Nasdaq intraday exclusively
Trading in GMT time zone
Sharing my post day review & analysis in case it can help you :)
Back from a bit of a long weekend!
Did my analysis at +- 5:20am.
At time of analysis I noted the following:
Nasdaq had been moving strangely since CPI. Consolidating on the D TF with very long wick candles and doji’s forming.
But the top wick’s of the day candles are adhering to a downtrend line.
I noted that the bodies of the candles were closing lower on the 4H TF (point A. on 4H TF vs. point B on 4H TF).
Market had pushed down heavily in the early hours of the morning.
The line chart of the D TF showed a double top (neckline marked in darker blue). The 4H TF showed a double top (neckline marked in green). The 1H TF showed a head and shoulders pattern with an upward slanted neckline (marked in turquoise).
All these bearish patterns, together with the D candles (showing loss of momentum of the buyers) indicated a very bearish mood in the market.
I entered a sell at C. – Confirmations:
Market Pattern: Bearish Patterns on 4H and 1H TF. C. represented a break in the neckline of both these patterns.
Candlesticks: Red candles on 1H and 4H TF the whole morning till that point in time.
Fib: None
Trendline: None specifically. But the 4H TF candles closing with lower highs gave me a very rough trend (point A. vs point B. as motioned earlier)
S&R: Candles had moved below pivot point and below the 1H and 4H 20 EMA, so dynamic support was broken. Point F. can be taken as a retest of the pivot and the 1H EMA which broke bearish.
Mental stop was placed above the pivot point marked with a thick pink line.
Market moved down quite rapidly and I took partial profit at D. because the 4H EMA was at this point and together with the 1H 200 EMA, I thought this might cause the bulls to step in.
Took more profit at E. because of the 1H doji candle close and also because price had travelled down the full distance of the height of the market pattern of the 4H double top. So market was bound to retest the neckline from here.
I kept a small portion of my position open just in case market turned bearish before the neckline but ultimately I was taken out at entry.
After this trade and after having made some good money for the day (market had moved about 780 pips in my favour). I decided to not trade again based on how strangely market has been moving these past few days and that I should be happy to have caught such a good move.
But, and here was my lesson for the day, there was a bigger and better move in the works.
Price came back to test the neck line of both market patterns and then moved down again.
Maintaining my discipline and respecting my decision not to trade again today, I entered a sell at G. on my DEMO account. Confirmations -
Market Pattern: Retest of the neckline of both market patterns on 1H and 4H TFs
Candlesticks: Red doji candle close on 1H TF
Fib: G. was at 0.50 Fib level (fib drawn from swing high at B. to swing low at H.)
S&R: Doji closed below 1H 20 EMA and also the 4H EMA
Ultimately the move down was +- 2000 pips.
So although I am impressed with my discipline of sticking to my decisions…I limited myself and lost out on a massive move.
Over trading is one thing. But if Nas throws out 2 great opportunities in a day then be smart enough to recognise that this is not overtrading, but rather just taking advantage of what market has to offer.
Don’t limit yourself and decide, like I did today, to take advantage of one opportunity and be done for the day.
Nas can put out multiple opportunities in a single day and on other days, market is nothing but choppy.
Take a moment to reflect what you define as over-trading and how this is different to taking advantage of multiple opportunities.
Hope you caught the second sell! It was an easy trade….wish I had taken it with real money!
What could I have done differently:
Be discipled enough to avoid over trading but smart enough / flexible enough to go against my decision when such a great opportunity presented itself.
Also the gap down on the 15min TF was COOL! :)
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 :)
Back from a bit of a long weekend!
Did my analysis at +- 5:20am.
At time of analysis I noted the following:
Nasdaq had been moving strangely since CPI. Consolidating on the D TF with very long wick candles and doji’s forming.
But the top wick’s of the day candles are adhering to a downtrend line.
I noted that the bodies of the candles were closing lower on the 4H TF (point A. on 4H TF vs. point B on 4H TF).
Market had pushed down heavily in the early hours of the morning.
The line chart of the D TF showed a double top (neckline marked in darker blue). The 4H TF showed a double top (neckline marked in green). The 1H TF showed a head and shoulders pattern with an upward slanted neckline (marked in turquoise).
All these bearish patterns, together with the D candles (showing loss of momentum of the buyers) indicated a very bearish mood in the market.
I entered a sell at C. – Confirmations:
Market Pattern: Bearish Patterns on 4H and 1H TF. C. represented a break in the neckline of both these patterns.
Candlesticks: Red candles on 1H and 4H TF the whole morning till that point in time.
Fib: None
Trendline: None specifically. But the 4H TF candles closing with lower highs gave me a very rough trend (point A. vs point B. as motioned earlier)
S&R: Candles had moved below pivot point and below the 1H and 4H 20 EMA, so dynamic support was broken. Point F. can be taken as a retest of the pivot and the 1H EMA which broke bearish.
Mental stop was placed above the pivot point marked with a thick pink line.
Market moved down quite rapidly and I took partial profit at D. because the 4H EMA was at this point and together with the 1H 200 EMA, I thought this might cause the bulls to step in.
Took more profit at E. because of the 1H doji candle close and also because price had travelled down the full distance of the height of the market pattern of the 4H double top. So market was bound to retest the neckline from here.
I kept a small portion of my position open just in case market turned bearish before the neckline but ultimately I was taken out at entry.
After this trade and after having made some good money for the day (market had moved about 780 pips in my favour). I decided to not trade again based on how strangely market has been moving these past few days and that I should be happy to have caught such a good move.
But, and here was my lesson for the day, there was a bigger and better move in the works.
Price came back to test the neck line of both market patterns and then moved down again.
Maintaining my discipline and respecting my decision not to trade again today, I entered a sell at G. on my DEMO account. Confirmations -
Market Pattern: Retest of the neckline of both market patterns on 1H and 4H TFs
Candlesticks: Red doji candle close on 1H TF
Fib: G. was at 0.50 Fib level (fib drawn from swing high at B. to swing low at H.)
S&R: Doji closed below 1H 20 EMA and also the 4H EMA
Ultimately the move down was +- 2000 pips.
So although I am impressed with my discipline of sticking to my decisions…I limited myself and lost out on a massive move.
Over trading is one thing. But if Nas throws out 2 great opportunities in a day then be smart enough to recognise that this is not overtrading, but rather just taking advantage of what market has to offer.
Don’t limit yourself and decide, like I did today, to take advantage of one opportunity and be done for the day.
Nas can put out multiple opportunities in a single day and on other days, market is nothing but choppy.
Take a moment to reflect what you define as over-trading and how this is different to taking advantage of multiple opportunities.
Hope you caught the second sell! It was an easy trade….wish I had taken it with real money!
What could I have done differently:
Be discipled enough to avoid over trading but smart enough / flexible enough to go against my decision when such a great opportunity presented itself.
Also the gap down on the 15min TF was COOL! :)
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