Nasdaq Intraday Review - Monday 6 Jan 2025I 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 - I think BUY.
Morning analysis:
M TF - so far, buyers are showing strength after last month's doji candle close. Can't read too much into it though because the candle is not fully formed and closed, but it does indicate buyers sentiment currently.
W TF - Last weeks candle closed just below the W neckline, but does this constitute a break of the neckline downwards? Difficult to say because bulls were in total control of the market last Friday and drove price up by thousands of pips, creating a very long wick candle. It was only in the final 4H of Friday that bears pushed price down +-170 pips below the neckline. The market is imperfect, and I would not be too quick to read this as a neckline broken downwards, especially because the early morning trading of today shows a strong rejection of the neckline area. I draw my neckline and S&R as lines but one should always keep in mind that these are areas or zones.
D TF - Clear falling wedge pattern in formation (shown in grey and blue lines). These tend to break upwards, but can break in either direction. A break of this pattern in either direction, will result in a large move because the pattern is so large the resulting break + profit target will be large. At time of writing this morning, price is consolidating at D EMA.
4H TF - Strong uptrend and this morning we see a strong rejection of the W neckline area, with a gap up and a candle wick down to the neckline area.
Morning interest areas where identified but these later changed as fibs had to be re-drawn (and so not shown on the charts).
Later once price stabilised, interest zones where identified but price did not retrace. Day and 4H fibs were drawn from swing low at B to swing high at A.
Area's of confluence marked in green highlight but now invalid as price keeps climbing.
This morning....
I identified a red highlighted area which I deemed a strong sell area due to D EMA possibly acting as dynamic resistance + D 0.50 sell fib level.
Price started to consolidate here in an ascending triangle pattern. These patterns usually break upwards, but can break in either direction.
I entered a buy at the hand icon on the break of the market pattern + the D EMA (D EMA has now moved higher as price has moved higher).
I took a small position because I don't like these entries where you buy at the highest level of the day which it was at the time of my buy (I find these to be risky and prone to fake outs). I prefer retracement entries (for me, safer entries).
Hence my small position.
Now I wish it was my usual position size because price is up +- 3'300 pips! :)
At least I caught the buy!
Hope you had a good trading 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
