Jamie mentioned in the comments of last night's post that the volume on FUQI daily chart was euphoric and that the end of the upside move was near. I think we all know that the euphoria and capitulation volume foreshadow the end of a move, but I sometimes forget the obvious. It is like having all the correct pieces for a puzzle, but still not being able to put it all together. Anyway, I guess it is all part of the learning process.
Soooo.... with all that in mind, I kept a close eye on FUQI and what I saw in today's charts was a sideway action with a lot of the bars leaving upper shadows, which I interpreted as maybe "the bears were taking the ball away from the bull." The series of inside bars that started at 1pm near the ORL and the NRIB at 1:45pm motivated me to enter the trade.
NOTE: It is interesting to see POT in the 1min chart from 1:30pm to 4pm. It is like a staircase or a series of small bear flags.
11 comments:
Nice job Anarco! I was watching it early on but missed the actual break. On the daily we have a red shooting star.
Nice trade Anarco.
Thank you Jamie!
And thanks for the ambush trade explanation. I saved the charts you pointed me to and I am studying them. Although I can identify the initial "decisive move", it is still difficult to determine if the retracement to the AZ is decisive or not. I'll keep working on it :-)
nice comeback trade :)
Thanks Day Trader!
I am enjoying your posts.
I hope so 00nr7!
I still feel I am struggling...
Is the ambush trade explanation from a post ?
greytrader,
The explanation from Jamie is in the comments of this post
Would LEAP on the 15 today qualify as an ambush setup ?
greytrader,
I see it as a bear flag (and I could be wrong), but the main thing is that it is a great chart. Retreacement to the 50% of the initial move with volume contraction and bars getting narrower.I would have taken the trade.
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