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Long Red Candlestick Play Instructions

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Long Red Candlestick Play Instructions


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.

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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