NASDAQ — D1 / H4
Potential Correction Scenario After a Strong Impulse (Bearish Setup)
🔎 Market Structure (D1 / H4)
On the Daily timeframe, NASDAQ has already completed a strong bullish impulse and consolidated above the 2.618 Fibonacci extension. This confirms strong buying pressure, but at the same time suggests that the move may be overstretched and vulnerable to a corrective phase.
On the H4 timeframe, the market is beginning to form the technical conditions for a downside correction, supported by:
a potential Wave 3 forming to the downside
a breakout of the local trendline
weakening upside continuation after the strong impulse
early transition from impulsive growth into corrective structure
This setup does not imply an immediate reversal of the higher timeframe trend. It is a correction scenario inside an overheated bullish structure.
📐 Elliott Wave Context
D1: strong bullish impulse already extended above the 2.618 Fibonacci level
H4 Wave 1: initial downside move from the local high
H4 Wave 2: corrective rebound after the first bearish leg
H4 Wave 3: potential downside continuation (current scenario)
📌 Key principle:
The bearish correction scenario remains valid as long as price stays below the high of Wave 1 on H4.
📍 Entry
Entry: 27,159.6
The entry is positioned:
after the local trendline breakdown
inside the bearish impulse activation zone
in line with the developing corrective structure on H4
🎯 Target Levels (Correction Projections)
Targets are based on projected correction zones and key reaction levels:
TP1: 26,823.7
TP2: 26,405.9
TP3: 25,635.1
TP4: 25,088.1
Each target represents a potential reaction zone and a logical area for partial profit-taking during the corrective phase.
🛑 Invalidation / Stop Loss
Stop Loss: 27,426.6
📍 The stop is placed above the high of Wave 1, which:
invalidates the bearish correction structure if broken
signals that the downside scenario is weakening
protects against continuation of the bullish trend without a pullback
🧠 Risk & Trade Management
Correction setup inside a strong higher timeframe uptrend
This is not a primary trend reversal setup, but a pullback scenario after an extended move.
Recommended approach:
partial profits at TP1 / TP2
move stop to breakeven after clean bearish continuation is confirmed
avoid increasing risk before H4 downside structure is fully confirmed
keep risk per trade within 1–3% of portfolio capital
📌 Summary
NASDAQ on D1 shows a strong bullish impulse that has already extended above the 2.618 Fibonacci level, which may indicate an overheated market.
On H4, price is forming a potential Wave 3 to the downside and has already broken the local trendline, supporting a corrective bearish scenario.
The bearish setup remains valid below 27,426.6, with downside targets at 26,823.7 → 26,405.9 → 25,635.1 → 25,088.1.
Signal / idea is not an investment recommendation.
Potential Correction Scenario After a Strong Impulse (Bearish Setup)
🔎 Market Structure (D1 / H4)
On the Daily timeframe, NASDAQ has already completed a strong bullish impulse and consolidated above the 2.618 Fibonacci extension. This confirms strong buying pressure, but at the same time suggests that the move may be overstretched and vulnerable to a corrective phase.
On the H4 timeframe, the market is beginning to form the technical conditions for a downside correction, supported by:
a potential Wave 3 forming to the downside
a breakout of the local trendline
weakening upside continuation after the strong impulse
early transition from impulsive growth into corrective structure
This setup does not imply an immediate reversal of the higher timeframe trend. It is a correction scenario inside an overheated bullish structure.
📐 Elliott Wave Context
D1: strong bullish impulse already extended above the 2.618 Fibonacci level
H4 Wave 1: initial downside move from the local high
H4 Wave 2: corrective rebound after the first bearish leg
H4 Wave 3: potential downside continuation (current scenario)
📌 Key principle:
The bearish correction scenario remains valid as long as price stays below the high of Wave 1 on H4.
📍 Entry
Entry: 27,159.6
The entry is positioned:
after the local trendline breakdown
inside the bearish impulse activation zone
in line with the developing corrective structure on H4
🎯 Target Levels (Correction Projections)
Targets are based on projected correction zones and key reaction levels:
TP1: 26,823.7
TP2: 26,405.9
TP3: 25,635.1
TP4: 25,088.1
Each target represents a potential reaction zone and a logical area for partial profit-taking during the corrective phase.
🛑 Invalidation / Stop Loss
Stop Loss: 27,426.6
📍 The stop is placed above the high of Wave 1, which:
invalidates the bearish correction structure if broken
signals that the downside scenario is weakening
protects against continuation of the bullish trend without a pullback
🧠 Risk & Trade Management
Correction setup inside a strong higher timeframe uptrend
This is not a primary trend reversal setup, but a pullback scenario after an extended move.
Recommended approach:
partial profits at TP1 / TP2
move stop to breakeven after clean bearish continuation is confirmed
avoid increasing risk before H4 downside structure is fully confirmed
keep risk per trade within 1–3% of portfolio capital
📌 Summary
NASDAQ on D1 shows a strong bullish impulse that has already extended above the 2.618 Fibonacci level, which may indicate an overheated market.
On H4, price is forming a potential Wave 3 to the downside and has already broken the local trendline, supporting a corrective bearish scenario.
The bearish setup remains valid below 27,426.6, with downside targets at 26,823.7 → 26,405.9 → 25,635.1 → 25,088.1.
Signal / idea is not an investment recommendation.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.