Ambush is one of the highest probability trades that works in most markets on all time frames, from minute to monthly charts.
Ambush Trade is basically a 50% Fibonacci retracement trade or simply put “half-way-back” trade.
– Pull up Fibonacci Retracement Tool on your charting software
– Draw from the beginning of the move to the end of the move (in the example 834.25 to 855)
– Highest probability entry would be at the 50% line or just inside the 50-61.8% zone.
– If 61.8% line is broken, Ambush trade is considered failed
Ambush Trades are everywhere and work equally as well going long and short, just take a look at action of last 24 hours
Ambush trades or 50%-61% retracements are very natural in all markets and occur on all time frames.
Amongst all various trading strategies this trade alone can make a trader very profitable. With the help of multiple time frames and various market internals it is possible to further increase probabilities of this particular trade, more on that in latter Ambush Trading Strategies posts.
There is an excellent 2 hour recorded webinar by Emini Addict explaining the basics of the Ambush Trade as well as how to use market internals to increase probabilities: Ambush Trade Webinar