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Step 1 -
Look for a LONG RED CANDLESTICK resting on MINOR
PRICE SUPPORT and also a rising 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 high of the first 5
minute candlestick.
Step 5 -
Enter the stock if it trades 1/8th above the
high of the first 5 minute candlestick. If
the stock does not trade 1/8th higher than
the high 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 entering the stock, place an initial
protective stop 1/8th below the low price of the
day.
Step 8 -
Monitor the stock during the next 15 min.
candlestick.
Step 9 -
Adjust the protective stop to 1/8th below the
low price of the previous 15 min. candlestick.
Stay in the trade as long as the stock trades
above this price.
Step 10 -
Monitor the stock during the next 15 min.
candlestick.
Step 11 -
Adjust the protective stop to 1/8th below the
low price of the previous 15 min candlestick.
Stay in the trade as long as the stock trades
above this price.
Step 12 -
Continue to monitor the stock during each new 15
min. candlestick, and adjust your protective
stop to 1/8th below each previous 15 min.
candlestick's low.
Step 13 -
Exit the stock for profit when it finally trades
1/8th below the low 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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