AMAG pharmaceuticals is in a down trend and recently made a lower high, so I am looking for a short set-up on a day trade.
On the 5-minute, we are looking for a strong tend as determined by an ADX > 25. The we wait for a retracement up to the 20-bar EMA for a short entry. Buy-stop is set at the resistance level as determined, in this case, by the top of the previous large red bar.
Target is above the low of day for a day-trade, but this one could go much lower on a mutlti-day time frame. (Disclosure: I'm short this stock from 41.01 and have cover 1/3 already.)