Set up – (priced $2-$8) BE MORE PATIENT
Pre-trade – PATIENCE (always read the chart/candles nothing else)
A) Trendlines – 5min candle pre-market TL’s throughout the day / Pre-market high / Daily / 4hour (Hourly if no recent levels)
B) Check the spread
C) Check the float – nothing above 80 million
#1 Stock types – Established Top volume / Percentage gainers / Stick to 1 or 2 per day
#2 Patterns – HHHL / Double bottoms / Reversals
#3 Entry areas – Tested levels (EMAs/VWAP/Daily levels) / Double bottoms
#4 Entry signals – Hammer/Doji candles / Consolidation levels / Breakouts (pre-market wall breaking)
#5 Stops – Below wick of entry candle / Below consolidation area / 3% of account max
#6 Profit – Big 5min candle / Resistance levels (Intraday/Daily/VWAP)
At the end of every day – check your trades against your rules and adjust as needed
Other rules from other sources:
#4 hot chick stocks = main runner with all the eyes on it
also, this was primarily a short sell group so zombie (or zombie hour) was 10:30am EST. They covered all their shorts by that time because if you check a chart, that when most things reverse and start running back up. Covered by 10:30am was the rule until there was confirmed peak and backside to play in the afternoon.