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Step 1 -
Look for a BULLISH THRUSTING LINE resting on MINOR PRICE
SUPPORT, and/or a rising Major Moving Average
(10 MA, 20 MA, or 50 MA) on the daily chart.
Step 2 -
Pull up a 15 min. chart of the stock.
Step 3 -
Note the high price of the previous day's
daily THRUSTING LINE candlestick.
Your entry point is 1/8th above
this price.
Step 4 -
On the following day, allow the
stock to trade for 5 minutes before entering.
Enter the stock only if it breaks above the
entry criteria (1/8th above previous day's high)
and only after it has traded for 5 minutes.
If the stock does not break above the entry
point, do not enter.
Step 5 -
Observe the previous day's candlesticks on a
15 min chart. Find an internal line
of support that is formed on the 15 min.
chart. This will usually be an
intra-day area where the stock moves down to and
then rallies multiple times during the
day. Place the initial protective stop 1/8 below
the area of intraday support. Exit the stock for a small
loss immediately if the stock breaks below this
price.
Step 6 -
Monitor the stock as it continues to rally
upward. Look for areas of support (either
minor price support or base price support) on
the 15 minute chart, and re-adjust your
protective stop price upward as the stock
continues to rally. This will protect your
profits, and/or minimize your losses if the
stock should turn against you.
Step 7 -
Monitor the stock on a 15 min. charts as it
climbs upward, and stay in as long as the
protective stop is not violated. Allow the
stock to achieve 1 point or greater profit, and
then look for signs of weakness. A
reversal candlestick pattern on the 15 minute
chart will serve as a good indicator for a
reversal point. After the price
reaches an area of resistance and weakens, sell
half of your position. This may occur on
the same day as entry, or on the following day,
depending on the strength of the stock.
Maintain the latest protective stop price for
the remaining half of your position.
Step 8 -
Allow stock to continue it's rally.
After the stock has rallied further, again look
for an area of resistance where the stock begins
to weaken and reverse. This could be a
DOJI candlestick, or any other reversal
candlestick pattern on the 15 min. chart.
Sell the remainder of the position for profit.
If you have any questions
regarding this report or the CANDLESTICKSHOP.COM
website in general, please do not hesitate to
contact the author at info@candlestickshop.com
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