Nasdaq Intraday Review - Tuesday 10 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, but tomorrow is CPI
News - None
Directional bias - BUY. The M TF is very bullish and until there is a reversal pattern eg. DT on a high TF (like the D TF at least), I continue to hold my buy bias.
Morning analysis:
M TF - very bullish
D TF - Price is right at the neckline area (marked in green) at time of writing this morning. If candles start closing below neckline towards the mushroom, Nas will turn bearish, because then a day DT has formed with the neckline broken down (change the D TF chart to a line chart and it will be easily visible). D fib retracement levels were broken down yesterday, in other words bulls were not able to overcome the bears at these levels and bears push down past these levels. Now only W retracement levels remaining. W 0.382 fib level is 2800 pips down (at time of writing in the morning). Bulls last defense against the bears is the D neckline (marked in green) and a strong D support level, exactly at the D neckline. So this is the level were bulls will have to step in if they do today.
4H TF - Shrinking red candles at C. indicate a loss of bearish momentum. Hoping that bulls will push up from the green support / neckline. Drawn in the SELL fib levels because these will be key take profit levels. Sell fib drawn from swing high at B. to swing low at A.
As the day progressed:
As the morning progressed a falling wedge pattern formed on the 1H TF, as marked by the thick pink lines.
Entered a buy at the hand icon, when price broke upwards on the 15min TF - Confirmations:
1. Market pattern - Falling wedge pattern formed on 1H TF, right above key support. Pattern broken upwards, indicating that price is ready to move upwards
2. S&R - Green line represents D Neckline and key D support area. On the 1H TF, price is reacting to the 100 EMA, indicating that the torquiose EMA line is acting as dynamic support.
3. Trend - Buy is in the overall bullish trend of Nasdaq. Also the temporary downtrend line (the top pink line of the market pattern) is broken, indicating that price is ready to move upwards
4. Fib - None
5. Candlesticks - Shrinking candles on the 4H, indicating loss of bearish momentum
Mental SL placed at the thick pink line. I was willing to risk more today because it might have come down one last time to test the green line, this was purely based on my feeling, which luckily turned out not be true.
Luckily I had zero draw down and price shot up.
I took partial profits at the top hand icon (because that was TP2 on the buy fib (as drawn) and then closed almost all the rest of my position at the blue arrow (when a strong DT started forming on the 15min TF).
I left a runner open, just in case I could possibly benefit from a push up at CPI tomorrow, but this was taken out at entry ultimately.
Majority of my profits was about 1000 pips.
Stats:
The total bullish move for the day was +- 1575 pips:
I captured 63% of the total move (I'm happy with that).
Amazing to see how price reacted to the sell fibs today. Fib levels are real baby!
P.S. A note from yesterday's trading....I took a loss of 800 pips yesterday (I tried twice and hit SL twice). I was pretty bummed about it and didn't post :(
Won't be trading CPI tomorrow, because I feel I cant stack the probabilities in my favour! See ya Monday!
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
