Ambush Trade - CELG

I wasn't expecting much of an action today after the selloff yesterday. My main strategy for today was to play for small targets especially for longs as most of the trades would be against the sloping EMAs.

I started the day with 2 trades - FDX and TZA. FDX was an impulsive one and ended in a loss. Later I traded AMGN, CELG, FCX - all of which made me some money.


CELG formed a wide bar slicing through the PDH at the open and closed strong. The second bar appeared to start the retracement but the third and the fourth bar could not hold 61.8% Fibonacci retracement on a closing basis. It tried to rally again after forming a couple of spinning top candles. 7th candle was a NR7 and a spinning top that held the 61.8% fib. retracement of it's 2nd rally attempt on a closing basis (measured from the low of 4th bar to the high of the 7th bar). Shorted when price took out the low of the 7th candle. Usually the first target is the base in this setup but I exited my entire position at the rising 50 EMA. What I liked about this trade is that all the 3 charts (5,10, 15min) formed either doji or spinning tops at the time of the entry.


TZA (Trade based on 5 min. chart)

I was just going through my regular WL and just happened to see the indexes chart on the monitor to see how the markets were going. Both DOW and Naz formed doji below the ORL on 5 min. I wanted to go long DXD but TZA's hammer was green which I preferred.

Price gapped down on the open but found support on pivot. Price then moved up, touched PDH and then retraced back finding support on the rising 50 EMA. It took out PDH and formed a nice green hammer on PDH which closed almost at it's top. Entry was a little above the high of the hammer candle. Exited when it formed what looked like an evening star right below R1.


First candle of AMGN found support on PDL. 4th candle was NR7 on PDL. 1 min. chart looked like it was forming a base. Entered a little above the high of the 4th candle. 5th candle closed strong and I moved my stop loss to BE. Target was 50 EMA which it reached before reversing and going sideways the remaining of the day. My first taarget for these kind of trades would be the ORH (15 min.) and then the FE of the OR or any major EMAs that I use.


FCX opened within the PDR. 5-8th candles formed offsetting bars just below the ORL. Better entry would have been on the break of 8th candle and exited at 50 EMA but I entered a bit early, on the break of the high of 7th bar. Exited completely at 50 EMA.