Follow Rules:
- ENTRY
- Prior bar is Bullish Engulfing at key level
- Prior bar volume matches price movement
- Only take the best setups. Try to trade only 1-3 trades a day.
- RISK
- Only allow 5-10$ risk on the table at a time
- EXIT
- Scale out of working trade at key levels (or if buyers dry up), adjust stops
- Normally I exit when price stalls / buyers dry up / price moves lower then the prior bar's low.
- Ride the trend until it stops.
- DO NOT TRADE IF
- average range of bars are over 10-15 cents
- if volume doesn't match the bullish bar
- The spread between bid and ask is greater than 5-10 cents
- There is chop and a wide range. I want .40-1.00 max range.
- Distance between key levels is below .30-40 cents, not enough oppurtunity.