How I Day Trade 03-2010

My System

1. +50-day ADV (screen > %, top 50)
   
2. Gap +/-
   
3. OR h/l B/O
4. +2 bar P/back (lo lo/hi)
   
5. TB - 1st r/g tag ema
6. TB - hi hi/low (change in trend, vv) - Engulfing Body
   
7. TB trig outside OR h/l
8. +1R (prior day h/l to OR h/l)
9. Rising EMA (not Flat)
10. best PB hammer/Doji (tail)
    

1. TB - textbook hammer/doji, engulfing, close strong, hi hi/lo (PB not textbook doji/hammer)
   
2. TB s/b NRB (bigger R)
3. Immediate F/T (next bar) - no stalling
4. Want lively bars, not tight, tiny, difficult to read
5. Once in trade, place exit stops and walk away from cptr!!
6. PB must not be bull/bear hammer/tail if short/long
7. Ignore Naz - trade what I see on c/stick stock charts
8. Overall chart bull/bear (tails)
9. If PB bull/bear, ok if TB engulfing!
10. Feel the rhythm of the bars (chart) - as it p/back and move forward (does it present 2nd opp?)
11. 11.00am stop trading (goal is 9.30 - 11.00)
12. Wait for bar to complete
    

Avoid

1. Already tag fib
2. EMA flat
3. TB inside OR
4. Only 1 bar p/back
5. No roller-coaster TB - 1st r/g tag ema
   
6. TB not the 1st r/g bar tag ema
7. P/back must be orderly, not sloppy (1 red, 1 blue, 1 red, etc) - lower lows and highs!
8. Be wary of large OR bars - most need time to digest big gains