Monday, December 28, 2009

2010 Trading Rules

2010 Trading guiding principles

 Stock Scans (using finviz:
  1. Scan for Ascending Triangles, New Highs and Multiple Tops
  2. Closing price above 20, 50 & 100 MA
  3. Average Volume >300k
  4. Current Volume 1.5 or better
 Entry Rules
  1. Look for clear breach of prior resistance
  2. Buy on the first pullback. The rationale is to get rid of Trading BOTS that aim to sell new highs
  3. Breakouts must be met with volume
  4. New highs must hae higher relative strenght that the previous high by comparing RSI 7 readings
  5. If new high doesnt show Momentum - prepare for a Short setup
 Exit Rules

  1. Break of current trend
  2. Break of momentum

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