Nasdaq Intraday Review - Tuesday 3 Dec 2024
I trade Nasdaq exclusively
Trading in GMT time zone
Sharing my post day review and analysis in case it can help you!
Did my analysis at +- 5:30 am GMT (00:30 am EST)
Economic news - JOLTS job openings @ 15h00
News - None
Directional bias - BUY
Morning analysis:
M TF - Very bullish
W TF - Very bullish, but at a strong resistance now. Price will need to break the prior week's highest close.
D TF - Very bullish, yesterday's candle closed right at the weekly resistance
4H TF - Doji candle formed exactly on the W resistance but subsequent candles closed above. This doji level would be a good place for a mental stop loss because if candles start closing below this point, market could retrace. 4H 0.382 fib level (fib drawn from swing low at A to swing high at B.) + pivot point is far down...nearly 1000 pips from price (at time of writing at 5:49am). That's a long way down! Don't want to get into a deep drawdown situation.
30min TF - Ascending triangle forming (marked in orange lines). The resistance caused by the previous highest 4H candle close is holding candles down. But ascending triangles usually break upwards, as pressure mounts from bulls against the resistance level (although these market patterns can break either way).
2 x interest zones / areas of confluence identified:
1. Highest green highlighted area = pivot point + 4H 0.382 buy fib level
2. Lowest highlighted green area = This zone moved throughout the day at the 4H EMA moved, but eventually I settled on where it is marked now i.e. 4H EMA (at some point during the day) + 4H 0.618 buy fib level
As the day progressed:
Ultimately the ascending triangle broke downwards and a temporary downtrend line started forming as marked by the pink line.
This line held down many candles but eventually was broken on the 15min TF and I entered a buy at the top hand icon - Confirmations:
1. Market pattern - DB formed on the 15min TF, with neckline broken upwards + also breaking the temporary down trend line. The ascending wedge market pattern profit target had also just about been met (price usually travels the same distance as the height of the market pattern once the market pattern is broken - marked with the orange vertical line)
2. S&R - seemed as though the 1H EMA was providing dynamic support
3. Trend - temp down trend was broken (price had crossed the pink line) and my buy was in the same direction as the overall trend - The trend is your friend.
4. Fib - small 1H fibs were being adhered to, but didn't really consider this as part of my confirmation
5. Candlesticks - None really
Mental SL was placed at the thick pink line at about half the height of the DB.
Unfortunately, price could not remain above the pink down trend line on the higher TFs and price moved down. I closed as the 15min candle closed below my stop loss.
Took a loss of 250 pips, which I consider to be small and of no real consequence.
I don't regret this entry, it was worth a try and the SL was tight, so not a lot to risk.
Second buy entry was at blue arrow icon - Confirmations:
1. Market pattern - price had touched my green area of confluence and so I moved to the 5min TF where a DB formed and I entered on the break of the neckline upwards
2. S&R - pivot point
3. Trend - buy is in the same direction as the overall trend
4. Fib - DB formed just above the 4H 0.382 fib level
5. Candlesticks - long wicks down to the pivot point indicate that buyers are rejecting this zone and stepping in at this price level.
Mental SL was placed below the green area of confluence.
Price moved up, more than 250 pips from my entry and I secured at entry.
Unfortunately, price moved back down and took me out at entry.
Although I was ultimately right with my entries and direction....price was just to spiky for me today.
I stepped away from my screens for a few mins at 16h00 and missed a nice entry at C. where price broke the falling wedge pattern that ultimately formed on the 1H TF (between the pink and blue lines).
Was a bit bummed that I missed that one.
So ultimately for me, I closed the day with a small loss, today was just too spiky for my trading system.
Not complaining though because my risk was managed and I live to trade another day - "No Risk, No Magic"
Hope you had a better day! :)
Abbreviations:
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
H&S = head & shoulders
EMA = exponential moving average
SL = stop loss
Trading in GMT time zone
Sharing my post day review and analysis in case it can help you!
Did my analysis at +- 5:30 am GMT (00:30 am EST)
Economic news - JOLTS job openings @ 15h00
News - None
Directional bias - BUY
Morning analysis:
M TF - Very bullish
W TF - Very bullish, but at a strong resistance now. Price will need to break the prior week's highest close.
D TF - Very bullish, yesterday's candle closed right at the weekly resistance
4H TF - Doji candle formed exactly on the W resistance but subsequent candles closed above. This doji level would be a good place for a mental stop loss because if candles start closing below this point, market could retrace. 4H 0.382 fib level (fib drawn from swing low at A to swing high at B.) + pivot point is far down...nearly 1000 pips from price (at time of writing at 5:49am). That's a long way down! Don't want to get into a deep drawdown situation.
30min TF - Ascending triangle forming (marked in orange lines). The resistance caused by the previous highest 4H candle close is holding candles down. But ascending triangles usually break upwards, as pressure mounts from bulls against the resistance level (although these market patterns can break either way).
2 x interest zones / areas of confluence identified:
1. Highest green highlighted area = pivot point + 4H 0.382 buy fib level
2. Lowest highlighted green area = This zone moved throughout the day at the 4H EMA moved, but eventually I settled on where it is marked now i.e. 4H EMA (at some point during the day) + 4H 0.618 buy fib level
As the day progressed:
Ultimately the ascending triangle broke downwards and a temporary downtrend line started forming as marked by the pink line.
This line held down many candles but eventually was broken on the 15min TF and I entered a buy at the top hand icon - Confirmations:
1. Market pattern - DB formed on the 15min TF, with neckline broken upwards + also breaking the temporary down trend line. The ascending wedge market pattern profit target had also just about been met (price usually travels the same distance as the height of the market pattern once the market pattern is broken - marked with the orange vertical line)
2. S&R - seemed as though the 1H EMA was providing dynamic support
3. Trend - temp down trend was broken (price had crossed the pink line) and my buy was in the same direction as the overall trend - The trend is your friend.
4. Fib - small 1H fibs were being adhered to, but didn't really consider this as part of my confirmation
5. Candlesticks - None really
Mental SL was placed at the thick pink line at about half the height of the DB.
Unfortunately, price could not remain above the pink down trend line on the higher TFs and price moved down. I closed as the 15min candle closed below my stop loss.
Took a loss of 250 pips, which I consider to be small and of no real consequence.
I don't regret this entry, it was worth a try and the SL was tight, so not a lot to risk.
Second buy entry was at blue arrow icon - Confirmations:
1. Market pattern - price had touched my green area of confluence and so I moved to the 5min TF where a DB formed and I entered on the break of the neckline upwards
2. S&R - pivot point
3. Trend - buy is in the same direction as the overall trend
4. Fib - DB formed just above the 4H 0.382 fib level
5. Candlesticks - long wicks down to the pivot point indicate that buyers are rejecting this zone and stepping in at this price level.
Mental SL was placed below the green area of confluence.
Price moved up, more than 250 pips from my entry and I secured at entry.
Unfortunately, price moved back down and took me out at entry.
Although I was ultimately right with my entries and direction....price was just to spiky for me today.
I stepped away from my screens for a few mins at 16h00 and missed a nice entry at C. where price broke the falling wedge pattern that ultimately formed on the 1H TF (between the pink and blue lines).
Was a bit bummed that I missed that one.
So ultimately for me, I closed the day with a small loss, today was just too spiky for my trading system.
Not complaining though because my risk was managed and I live to trade another day - "No Risk, No Magic"
Hope you had a better day! :)
Abbreviations:
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
H&S = head & shoulders
EMA = exponential moving average
SL = stop loss
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