Still in the Retracement Mode

Jun 6, 2023

NAS100USD

NAS100 is moving a little sluggish the past few days which is not uncommon when you have a reversal situation like we currently have.

The M15 provided a good exit TP point at 14481.8 before doing a slight retracement back to the upside on the M15 to create a new high today.

While I did not take that entry, I noticed that it went down to complete a HL before climbing back to 14584.4 at 3:00pm EST.

While I do not normally enter on LH's I made the exception only because, the H1 did not complete it's low and it also did not signal even a HL so I was confident that it would still be going down, and of course the M15 was coming from a previous high and only managed to make a LH.

It is clear that the market is still searching for the low on the bigger timeframe and you will see that the H1 and the H2 have already formed 3 points out of the XABCD pattern.

X = HH
A= HL
B= LH
C= ???
D=???

If C drops below and breaks 14440.7 then you know that will be a strong indication that the trend towards the downside is starting to heat up.

If this current move puts on a new low on the H1, then you can ride the M15 to a LL for TP.

In any event even if the M15 puts on a HL you will still be able to get out in profit based on my entry 14571.25

Happy Trading

Jun 7, 2023

Trade active

The smaller timeframes from the M1 - M5 have all broken back into their downward structure with making direct moves from their respective highs to lows so now we should see this hold through to the larger timeframes until the day makes the HL

Jun 7, 2023

Trade closed manually

I took my profit at 14526 and decided to wait for another setup due to the fact that the M15 made only a segmented LOW (translated to a H1 HL) at 4:00am when the candle closed.

The M15 closed as an overbought segmented low and so no need to force it anymore.

I already have confirmation that my smaller timeframes are doing LH/LL since last night and as such it is just waiting for another setup to complete the move on the bigger timeframes.

The H1 timeframe still has not put on it's signal for a low and despite making a LH since yesterday at 12:00pm which confirmed the B point in the XABCD pattern, it is currently forming a HL (C point) and so I will continue to trade towards the low that is taking longer than I would want but it's a game of patience.

One thing is for sure and that is the highest point of the week so far came at 1:00pm on Mon June 5, and the market has been making LH's ever since, which suggests that it will be a matter of time for the current HL's on the larger timeframes to be broken and the H4 Low is created which will translate into a daily HL...

Happy Trading!