Long Green Candlestick

CandleStickShop.com Analysis

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.

Brought to you by:ย CandleStickShop.com