GS gaps up on earnings (loss is less than feared). Price breaks the ORH and comes back for a retest in the form of a bullish flag on declining volume.
MS reports tomorrow, but was a sympathy play with GS.
RIMM formed an inverse H&S pattern which triggered before the FED so I sized it on the light side. The measured move is 100%. Measure distance from point A to B and extend the distance from the BO point. Best to exist into strength, before the exact target is reached. Whole $ numbers are good exist points if they are near the measured move target.
BAC set up a perfect ambush trade following a 3 pivot point base and break on the FED announcement.Ambush Trade - look for retracement back to R-zone after a thrusty move. Price holds the 62% level on a closing basis. When price forms a base and moves back out of R-zone, we ambush.
This setup is used extensively by John Carter and co. at TradetheMarkets.com
4 comments:
Jamie,
Sweet trades today. I got killed this morning and am not good enough to trade the FED meeting, so I sat out this afternoon.
I like that ambush trade. I am reviewing charts tonight and see that SKF could have been an ambush and it dropped like a rock. Maybe too high risk, but looks good now.
Have a good night.
Tyler
Tyler,
Yeah, many sectors overbought and they tend to stall. Today I traded mostly underperforming stocks.
Just started using the ambush setup recently and so far, I've had great results.
Jamie,
What % of your trades are winners?
Quentin,
70% Boredom trades and head fakes account for mostly small losses.
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