Nasdaq Intraday Review - Monday 30 Dec 2024I 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 - None
News - None
Directional bias - BUY, all higher TFs are bullish
Morning analysis:
M TF - Bullish, but long wick starting to appear which indicates the pressure from bears - at time of writing, wick is 7'295 pips
W TF - Potential W neckline identified. On line chart candle closes have managed to stay above upward trend line.
D TF - Price came up to retest the DT (marked with green lines) and failed to successfully break the neckline upwards. Bears stepped in and pushed back down, now (at time of writing) it seems D EMA is acting as dynamic support.
As the day progressed:
Tried a small buy position at the top hand icon, but it turned out to be a fake out and I took a small loss (+- 300 pips).
Confirmations:
1. Market pattern - DB on 30min TF
2. S&R - D EMA seemed to be acing as dynamic support
3. Trend - temporary pink downtrend line broken upwards
4. Fib - DB forming right at D 0.382 fib level
Mental SL placed at the thick pink line i.e. half the height of the DB pattern. As candles started closing below my mental stop, I closed my position at 300 pips loss.
Price was unable to break through the 30min EMA. If Nasdaq is particularly bullish or bearish, price will react to the 30min EMA.
I was wary of this when I entered and so I entered my buy with a small position, ready to scale in if price moved my way.
However, price moved down significantly, tapping the W 0.618 fib level and the D 50 EMA.
Here price started to consolidate and formed a DB on the 15min TF.
Entered a full position size buy at the blue arrow icon - Confirmations:
1. Market pattern - DB on the 15TF, with a strong momentum candle breaking the neckline upwards (marked in turquoise lines)
2. S&R - strong D S&R zone (marked in red highlight on the D chart), from which price has significantly moved at A. and B. This level acted as resistance at A. and support at B. evidencing that this level is strong.
3. Trend - The temporary downtrend line (marked in orange) was broken upwards, indicating that price is no longer respecting this downtrend and is ready to move upwards.
4. Fib - Price wicked down to the W 0.618 fib level and the DB formed just above this level. This indicated that price is not only reacting to this level but also gave a trend reversal signal (DB pattern) at this level.
5. Candlesticks - A red inverted hammer candle formed on the 30min TF, just before the break of the 15min DB. This candle is bullish in nature and shows that bulls have entered the market and tried to push price higher, but bears did not have the strength to push price down significantly past the candle open. Indicates bearish loss of momentum.
Mental SL placed at the thick pink line, placed below the W 0.618 fib level and below the candle wicks sticking out below this fib level.
Price moved up nicely and I closed my position at 1'300 pips at the top blue arrow when price made a reversal pattern on the 15min TF (DT).
YEAR END CLOSING:
After today's nice profit, I decided to close out my trading year and so I wont be trading tomorrow.
This year was my best trading year yet.
I made 72% ROI and I can't help but say how proud I am of the progress I have made.
It's been a long road, but seeing the returns slowly building is very rewarding.
I hope you had a great trading year! And if not, this is a reminder that it is possible. It's extremely hard, but it is possible. Just keep going!
All the best for 2025! :) Hope we make some good $$$$$$$$$$$$$$$ :)
The total move for the day in the direction that I was looking for was 3'118 pips:
I captured 42 % of the total move and looking at the candles, I am happy with that.
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