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Step 1 -
Look
for a LONG GREEN CANDLESTICK against MINOR PRICE
RESISTANCE and also against a declining MAJOR MOVING
AVERAGE (10 MA, 20 MA or 50 MA).
Step 2 - Pull up
a 5 minute chart of the stock.
Step 3 - Note
the opening price of the stock. If the stock gaps up or
down more than 5/8th, DO NOT enter the
trade. If the stock opens within 5/8th of
the previous day's close, proceed to Step 4.
Step 4 - Wait
for the stock to trade for 5 minutes. After 5
minutes, note the low of the first 5 minute
candlestick.
Step 5 - Sell
short the stock if it trades 1/8th below the low of the first 5 minute candlestick. If the stock does
not trade lower than the low of the first 5 minute
candlestick, DO NOT enter the trade.
Step 6 - Pull up a 15 minute chart of the stock.
Step 7 - After
shorting the stock, place an initial protective stop 1/8th
above the high price of the day.
Step 8 - Monitor
the stock during the next 15 min. candlestick.
Step 9 - Adjust
the protective stop to 1/8th above the high price of the previous
15 min. candlestick. Stay in the trade as long as the
stock trades below this price.
Step 10 -
Monitor the stock during the next 15 min. candlestick.
Step 11 - Adjust
the protective stop to 1/8th above the high price of the previous
15 min candlestick. Stay in the trade as long as the
stock trades below this price.
Step 12 -
Continue to monitor the stock during each new 15 min.
candlestick, and adjust your protective stop to 1/8th
above each previous 15 min. candlestick's high.
Step 13 - Cover the stock for profit when it finally
trades 1/8 above the high price of
a previous 15 min. candlestick.
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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