Technical Analysis
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Objective
To identify and enter on strong bullish momentum that creates a full gap on daily price bars. While effective for trend trading moves, this can also be implemented for swing trading pur-poses.
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Watch List Criteria
Breakaway Gap• Sideways short-term/intermediate-term trend Run Away Gap
• Uptrend ▲
Entry Rules
Once a full gap is on the chart, there are three possible entries: 1. Close of Day Entry: large bullish candle
2. Intra-day Entry: 5-minute candle close above the high of the first half hour of trading 3. After the Gap Day: Daily candle close above the high of the gap day
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Money Management
Position Size
• Up to 2% of portfolio risk per trade ▲
Exit Rules
Stop Loss
• Initial stop loss = 1%-3% below support Swing Trade
• Target price Trend trade
• measuring gap target price
Bullish Gap Investing Plan
• Adjust stop per trend trading rules – 3% below intermediate-term support ▲
Routines
New Entries
• Watch for earnings announcements • Review chart toppers
Existing Positions
• Swing Trades: monitor daily for exits
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Objective
To identify and enter on strong bearish momentum that creates a full gap on daily price bars. While effective for trend trading moves, this can also be implemented for swing trading pur-poses.
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Watch List Criteria
Breakaway Gap• Sideways short-term/intermediate-term trend Run Away Gap
• Downtrend ▲
Entry Rules
Once a full gap is on the chart, there are three possible entries: • Close of Day Entry: large bearish candle
• Intra-day Entry: 5-minute candle close below the low of the first half hour of trading • After the Gap Day: Daily candle close below the low of the gap day
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Money Management
Position Size
• Up to 2% of portfolio risk per trade ▲
Exit Rules
Stop Loss
• Initial stop loss = 1%-3% above resistance Swing Trade
• Target price Trend trade
• measuring gap target price
Bearish Gap Investing Plan
• Adjust stop per trend trading rules – 3% above intermediate-term resistance ▲
Routines
New Entries
• Watch for earnings announcements • Review chart toppers
Existing Positions
• Swing Trades: monitor daily for exits
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Objective
To create trend trading systems to identify and enter at the beginning of an intermediate-term bullish market move. This papermoney® trading system emphasizes the importance of
discipline and routines. ▲
Watch List Criteria
Market Posture
• Bullish market posture confirmed with the market Forecast intermediate-term (green) line going up or in the upper-reversal zone
Fundamental Criteria
• Run a global Search with the following criteria: ̘ number of ‘good’ phase 1 Indicators – min = 5 ̘ F/e Score – min = 3.25
̘ price pattern Score – min = 2.75 ̘ volatility Score – min = 2.00 ▲
Entry Rules
30-Day SMA
• enter when stock closes above the 30-day SmA
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Money Management
Position Size
• Up to 2% of portfolio risk per trade ▲
Exit Rules
Stop Loss
• Trail stop 3% below 30-day SmA and adjust daily
One Green Arrow Investing Plan
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Routines
Daily• monitor Technicals page on portfolio tab for a green 1 in the 30-Day mA Breakout column
• move stops higher Monthly or Quarterly
Price Patterns – Bull Flags – Investing Plan
TechnIcAl AnAlySIS
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Objective
To identify and trade consolidations of a trending market. Take advantage of short-term mo-mentum by entering near support and exiting at a swing target.
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Watch List Criteria
Trend• Uptrending Stock Fundamental Criteria
• Run a global Search with the Following criteria: ̘ number of ‘good’ phase 1 Indicators – min = 5 ̘ F/e Score – min = 3.25
̘ price pattern Score – min = 2.75 ▲
Entry Rules
Support Bounce
• close above the high of the low day Pattern Breakout
• close above the resistance line of the pattern
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Money Management
Position Size
• Up to 2% of portfolio risk per trade ▲
Exit Rules
Stop Loss
• Initial stop loss: 2% below support Target Price
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Routines
Daily▲
Objective
To identify changes in the intermediate-term trend. potential long-term trend trading system. ▲
Watch List Criteria
• liquid eTFs (greater than 250,000 average daily volume) • 2-year chart, weekly bars
• 10-period emA • 40-period emA ▲
Entry Rules
Bullish Crossover
• 10-period crosses above 40 period; confirmed if lines continue to diverge on 3rd weekly candle after cross
Bearish Crossover
• 10-period crosses below 40 period; confirmed if lines continue to diverge on 3rd weekly candle after cross
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Money Management
Position Size
• Up to 2% of portfolio risk per trade ▲
Exit Rules
Stop Loss
• Stop loss 3% below support on weekly bars ▲
Routines
Weekly
• monitor for crosses
