Ambush Trade - JEC

JEC was an ambush trade. First leg down was yesterday afternoon sell-off. Today, it retraced a little only to find the EMA's acting as resistance. Entered short on first sign of weakness. Took off 1/4th at 5 DMA. Half at 35% FE and the remaining 1/4th at S2. JEC was extended on the daily charts and was on my watchlist.

2nd bar is an inside bar closing strong. 5 EMA was near to the entry bar. Entered long on the break of 1st bar high. Target was 100% FE of the first bar but closed the position when it formed 2 bearish like candles.

I was looking for a short entry in X. Entered short when it formed strong opposing candles and took off the support. Did not work out and ended in a loss.

Completely missed BIDU. Just posting the chart.

Ambush Trade - RINO

RINO was weak compared to the strong market in the market. It sold off right after the open but I could not get a nice entry. It then set up an ambush trade. Entered short when price could not hold 50 EMA on 5 min. It was an easy ride to the 50 EMA on 15 min. which was also 50% FE from the morning high to morning low.


I entered SU on the break of 2nd inside bar high. First bar had a nice upper tail followed by a red inside doji within the first bar. 3rd bar initially took out the low of 2nd bar but then moved up. I entered long when price took out 2nd bar high with the upsloping 5 EMA as support. Price moved slower than the snail. Partialled near 37.50 and exited the remaining a few bars later near the same price.

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.

Ambush Trade - JOYG

JOYG was an ambush trade measured from yesterday's evening move up start point to PDH. Price held the 61.8% fib. retracement on a closing basis. Entered when price broke out 38% fib. retracement. My first target was fib. base and next target was 50% FE. I set my target a few cents below PDH but price reversed before that. I exited completely at $36.49.

Edited to add: I exited completely because Nasdaq was forming very bearish shooting star candles on 5 mins.

Ambush Trade - AGU, BGU

AGU sold immediately after the open and then retraced in the ambush zone: 50-61% of the up move in this case and held 61% retracement level on closing basis. (For details on ambush setup, pls. visit Wall Street Warrior blog). It formed a bearish shooting star like candle at the 61% level. Entered short and covered the entire position at base.


BGU which is large cap bull 3X ETF whose movement is more or less like the Dow index. First 3 bars were nice red bars. It found support a little below PDL and started to move back up strongly. 11th bar started the retracement and found support in the ambush zone. Entered long when price mobed strongly above the ambush zone, took partial at base and left remaining at BE. My next target area was 50% FE from the base but when price was unable to break above 33 level decisively, exited entire position a little below 33 level.

POT - Rounded Top

Started the day very bad with 3 losers, a total loss of ~3.5R. ACI - entered long on the break of the 2/15 candle which stopped me out right away. ABX - short and BIDU. I was very lethargic and just did not move my stops. I was patient with my POT trade and exited my entire position for 5R profit.

Also wanted to enter JOYG on the 16th bar which looked like a tower top setup (need to check the criteria again from Jamie's blog) but did not. These bad trades are really eclipsing the better trades/opportunities. I must be more active in moving my SL if I think the trades have high chances of moving against me after my entry. CUT THE LOSERS! CUT THE LOSERS! I have to remind myself all the time.


POT was weak in the morning and moved down, rebounded from 50EMA. At around noon, it formed a series of NRB. Entered short on the break of the low of those NRBs. Moved SL to BE after POT closes below daily pivot. Exited entire position on the orange 5-day MA.

Edited to add:

Jamie traded POT today based on ambush setup. Below is his chart and description of the trade copied from his blog.


After early weakness, POT retraced 62% from morning high/low. it printed 3 IBs, the last of which was NR7 with body in the shadow of the previous bar (red on red) - very bearish.

Normally on the ambush trade, we take half off when price approaches lower fib, but today the market was starting to rip lower, so hang on for 3 WRBs. Price carved out a hammer reversal stick at the 50% FE so I tightened stop. It ended up being just a pause, as price eventually tagged the 100% FE.