Daily Recap 20-03-2025

The pre-market established a downtrend but failed to form a new extreme low, signaling the market's reluctance to push lower. This indicated we might transition into either a trading range or a new uptrend. Potential resistance was easily broken on NQ, but prices stalled afterward, suggesting caution and the need for additional confirmation before taking long trades.

The first strong setup appeared shortly thereafter, showing space between bars, solid EMA support, and a perfect signal bar—making it an ideal long entry.

About 50 minutes later, another promising setup emerged, bouncing clearly off support. However, this trade carried additional risk since we had recently made a new daily high without significant follow-through momentum. Viewing it as a range-bound trade was justified, though ultimately, the setup failed as bears took control.

The final setup of the day had weak support and wasn't particularly strong according to our price action rules, but despite its lower quality, it still ended up working successfully. This day highlights the importance of consistently applying price action principles and managing expectations when market conditions are mixed.