Nasdaq Intraday Review - Friday 12 July 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 +- 6am GMT (1am EST)
Economic news - PPI @ 13:30
News - None
Directional bias - BUY
Took a massive 2'000 pip loss the day before, so I knew I had to tread carefully today and make my best trading decisions. This was no time for revenge trading nor cowboy moves.
I had to make a really good trading decision or stay out to protect my capital, until a quality trade made itself visible.
Judging the candles and the fact that price had dropped 6'000 pips (un-freakin-believable), I felt like price would retrace to at least test the sell fib levels.
Price had formed a consolidation triangle (marked in blue lines during the early morning hours). These can break up or down. So I knew I had to be careful because it could be that price was just stalling before making a further plunge down to sellers TP1 (marked in orange and found by drawing a sell fib from swing high at A. to swing low at B.)
Price broke down from the consolidation triangle, but the yellow highlighted S&R zone seemed strong enough to hold price up.
Entered a buy at the hand icon - Confirmations:
1. Market pattern - DB formed on the 30min TF with a break of the neckline upwards. Entered when the neckline break candle closed.
2. Fib - consolidation triangle + DB market patterns were forming just above the W - 0.050 fib level
3. S&R - yellow highlighted support zone seemed to be holding up price, indicated by the long wick candles forming at this zone.
4. Trend - the buy was in the same direction as the overall bullish trend on Nas, and the break of the neckline candle had broken the temporary downtrend line (the upper blue line of the consolidation triangle)
5. Time frame confluence - at the same time as the DB with a broken neckline was formed on the 30min TF, it also formed on the 1H TF. So multiple TF's were giving bullish signals.
Mental stop loss was placed at half the height of the market pattern and I decided to place my SL at half the height of the 15min DB, just because it was also the 1H S&R zone that seemed to be holding strong.
For me, if candles started closing below this level than my buy would be invalidated.
As I entered, price immediately dropped.
Price was playing around my SL but when the long wick hammer candle closed on the 30min TF, I decided to keep my buy active.
Price moved up and away from my stop loss area. When PPI news broke, price spiked down, but even on the 5min TF, the candle closed way above my SL zone.
From there, bulls pushed up hard and price moved up quickly.
This is what makes trading Nas so difficult in my opinion, candles can spike drastically, but it's how they close that really matters. So sometimes you have to have the bravery to sit out a deep spike. Not easy.
So now I knew a retracement was in play and the area around the pivot was a strong sell zone because:
Pivot point + 4H - 0.318 fib level + 4H EMA (at that time).
Price blasted past this zone but when there was weakness in the candles on the 15min TF, I decided to call it a day at 2'000 pip profit and thank my lucky Nasdaq stars that I had recovered my my previous day's mistake.
In theory, I would have liked to keep a runner open in case price moves back up but I had no such luxury today....I needed every pip that Nasdaq would give me.
Hope you are having a good weekend!
See ya Monday for more Nasdaq fun! ;)
Abbreviations:
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
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 +- 6am GMT (1am EST)
Economic news - PPI @ 13:30
News - None
Directional bias - BUY
Took a massive 2'000 pip loss the day before, so I knew I had to tread carefully today and make my best trading decisions. This was no time for revenge trading nor cowboy moves.
I had to make a really good trading decision or stay out to protect my capital, until a quality trade made itself visible.
Judging the candles and the fact that price had dropped 6'000 pips (un-freakin-believable), I felt like price would retrace to at least test the sell fib levels.
Price had formed a consolidation triangle (marked in blue lines during the early morning hours). These can break up or down. So I knew I had to be careful because it could be that price was just stalling before making a further plunge down to sellers TP1 (marked in orange and found by drawing a sell fib from swing high at A. to swing low at B.)
Price broke down from the consolidation triangle, but the yellow highlighted S&R zone seemed strong enough to hold price up.
Entered a buy at the hand icon - Confirmations:
1. Market pattern - DB formed on the 30min TF with a break of the neckline upwards. Entered when the neckline break candle closed.
2. Fib - consolidation triangle + DB market patterns were forming just above the W - 0.050 fib level
3. S&R - yellow highlighted support zone seemed to be holding up price, indicated by the long wick candles forming at this zone.
4. Trend - the buy was in the same direction as the overall bullish trend on Nas, and the break of the neckline candle had broken the temporary downtrend line (the upper blue line of the consolidation triangle)
5. Time frame confluence - at the same time as the DB with a broken neckline was formed on the 30min TF, it also formed on the 1H TF. So multiple TF's were giving bullish signals.
Mental stop loss was placed at half the height of the market pattern and I decided to place my SL at half the height of the 15min DB, just because it was also the 1H S&R zone that seemed to be holding strong.
For me, if candles started closing below this level than my buy would be invalidated.
As I entered, price immediately dropped.
Price was playing around my SL but when the long wick hammer candle closed on the 30min TF, I decided to keep my buy active.
Price moved up and away from my stop loss area. When PPI news broke, price spiked down, but even on the 5min TF, the candle closed way above my SL zone.
From there, bulls pushed up hard and price moved up quickly.
This is what makes trading Nas so difficult in my opinion, candles can spike drastically, but it's how they close that really matters. So sometimes you have to have the bravery to sit out a deep spike. Not easy.
So now I knew a retracement was in play and the area around the pivot was a strong sell zone because:
Pivot point + 4H - 0.318 fib level + 4H EMA (at that time).
Price blasted past this zone but when there was weakness in the candles on the 15min TF, I decided to call it a day at 2'000 pip profit and thank my lucky Nasdaq stars that I had recovered my my previous day's mistake.
In theory, I would have liked to keep a runner open in case price moves back up but I had no such luxury today....I needed every pip that Nasdaq would give me.
Hope you are having a good weekend!
See ya Monday for more Nasdaq fun! ;)
Abbreviations:
TF = timeframe
TP = take profit
1H = 1 hour
4H = 4 hour
D = day
W = week
M = month
S&R = support & resistance
EMA = exponential moving average
SL = stop loss
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