Nasdaq Intraday Review - Wednesday 27 Nov 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 - None
News - None
Directional bias - BUY
Morning analysis:
D TF - Noted a potential D neckline (which will form if market comes down, marked in neon green line)
4H TF - Noted a potential 4H neckline. If the 7am candle closes below the neckline, then price might be moving down and I would have to be patient and wait for quality confirmations before entering a good buy (marked in orange line)
Difficult to identify areas of confluence, but highlighted two green areas:
1. The 4H EMA was roughly in the same area as the pivot point and 4H 0.382 fib level
2. The D 0.50 fib area was roughly in the same area as the D EMA
Note: EMAs are marked on the chart where they were at a point in time on Wednesday. They have now moved due to passage of time.
As the day progressed:
Entered a buy at the hand icon Z. - Confirmations:
1. Market pattern - DB formed on the 15min TF, with neckline (+ pivot) broken upwards with a strong momentum candle
2. S&R - pivot broken upwards
3. Trend - Buy is in the same direction as the overall trend. The trend is your friend!
4. Fib - DB formed right at the 4H 0.382 fib level, indicating that price is reacting to this level and because neckline is broken up with a strong momentum candle, price is indicating that buyers are stepping in and price is ready to move up.
5. Candlesticks - On the 1H TF, price is managing to close above the 4H 0.382 fib level with wicks sticking out below.
Mental SL placed at the thick pink line, which is below the 4H EMA for extra protection, i.e. hoping that price will indeed react to the dynamic support offered by the EMA.
Price moved up, luckily more that 250 pips, and I secured at entry (placed actual stop loss at my trade's entry position).
This is one of the rules of my system - place SL at entry after 250 pips.
And Wednesday reminded me again how important it is to be super disciplined and always stick to your trade rules. I would never have expected Nas to make such a huge and aggressive correction. If I was sloppy with my discipline, I could have lost months and months of hard work building my account.
So whatever your trade rules are, this is a reminder to stick with them EVERY TIME, because you created them to protect you and they will save you when you least expect it.
Price dropped drastically, I was taken out at entry and then price proceeded to fall through the floor rapidly.
I entered an aggressive entry at hand icon X. - Confirmations:
Double bottom formed on the 15min TF right at the D EMA + W 0.50 fib level + D 0.618 fib level
Price moved up and I closed at the end of the day at the blue arrow, making 637 pips for the day.
I closed because I thought Thanksgiving would be slow trading and decided that I would not trade Thursday and Friday because I don't like slow trading.
Looking at the charts now, I see trading was anything but slow!!
Hope you had a good trading week! :)
See you next week for some exciting trading!
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 - None
News - None
Directional bias - BUY
Morning analysis:
D TF - Noted a potential D neckline (which will form if market comes down, marked in neon green line)
4H TF - Noted a potential 4H neckline. If the 7am candle closes below the neckline, then price might be moving down and I would have to be patient and wait for quality confirmations before entering a good buy (marked in orange line)
Difficult to identify areas of confluence, but highlighted two green areas:
1. The 4H EMA was roughly in the same area as the pivot point and 4H 0.382 fib level
2. The D 0.50 fib area was roughly in the same area as the D EMA
Note: EMAs are marked on the chart where they were at a point in time on Wednesday. They have now moved due to passage of time.
As the day progressed:
Entered a buy at the hand icon Z. - Confirmations:
1. Market pattern - DB formed on the 15min TF, with neckline (+ pivot) broken upwards with a strong momentum candle
2. S&R - pivot broken upwards
3. Trend - Buy is in the same direction as the overall trend. The trend is your friend!
4. Fib - DB formed right at the 4H 0.382 fib level, indicating that price is reacting to this level and because neckline is broken up with a strong momentum candle, price is indicating that buyers are stepping in and price is ready to move up.
5. Candlesticks - On the 1H TF, price is managing to close above the 4H 0.382 fib level with wicks sticking out below.
Mental SL placed at the thick pink line, which is below the 4H EMA for extra protection, i.e. hoping that price will indeed react to the dynamic support offered by the EMA.
Price moved up, luckily more that 250 pips, and I secured at entry (placed actual stop loss at my trade's entry position).
This is one of the rules of my system - place SL at entry after 250 pips.
And Wednesday reminded me again how important it is to be super disciplined and always stick to your trade rules. I would never have expected Nas to make such a huge and aggressive correction. If I was sloppy with my discipline, I could have lost months and months of hard work building my account.
So whatever your trade rules are, this is a reminder to stick with them EVERY TIME, because you created them to protect you and they will save you when you least expect it.
Price dropped drastically, I was taken out at entry and then price proceeded to fall through the floor rapidly.
I entered an aggressive entry at hand icon X. - Confirmations:
Double bottom formed on the 15min TF right at the D EMA + W 0.50 fib level + D 0.618 fib level
Price moved up and I closed at the end of the day at the blue arrow, making 637 pips for the day.
I closed because I thought Thanksgiving would be slow trading and decided that I would not trade Thursday and Friday because I don't like slow trading.
Looking at the charts now, I see trading was anything but slow!!
Hope you had a good trading week! :)
See you next week for some exciting trading!
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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