Preparing for the open

1. Based on TA find the market direction

• Use the weekly TAs indicators to find market general direction,

2. For an uptrend, buy strongest/market leaders/indices in the strongest segment stocks when it is weak, but hasn't broken major trend.

• Entry: a. Setup support level first. b. Scan the stock with up down. Scan TAS, from the daily, 60 minutes, 30 munites, 15 minutes, 10 minutes, 5 minutes. The more buying signals are better. c. Then Use 1 minute or 5 minutes TA for entry. Note: When entry, wait for a bullish candlestick pattern.
• Holding: Keep up the support level accordingly. For a mid term hold, use daily TAs. For a short-term, use short time frame TAs.
• Exit: a. Exit by touching the support level. b. By trading strategy (such as range trade).

3. For a downtrend, sell weakest/market laggers/indices in the weakest segment stocks with a broken trend based on 5-minutes TAs at open.

• Entry: Scan the stock with up down. Scan TAs, from the daily, 60 minutes, 30 munites, 15 minutes, 10 minutes, 5 minutes. The more selling signals are better. Then use 1 minute or 5 minutes TA for entry, wait for a bearish candlestick pattern.
• Holding: Keep up the support level accordingly. For a mid term hold, use daily TAs. For a short-term, use short time frame TAs.
• Exit: a. Exit by touching the support level. b. By trading strategy (such as range trade).

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1. Do the research

Rank the stocks based on TA indicators

• MACD and Stochastic Oscillator

Each stock has its own set of histogram values, a statistics data should be very valuable for the research.

buy signal: day3 (MACD - signal) greater than day2 (MACD - signal), and those numbers should be both negative.

buy signal: based on daily chart, lv = 20, day 1 %K and %D both less than lv and %K less than %D; day2 both %K and %D less than lv; day3 %K greater than %D and %D less than lv.

• RSI and MFI

buy signal: in day 1 or day2, RSI less than 20 or MFI less than 30, day 3,

• Williams %R
• ADX
• Parabolic SAR (for major indices and leading stocks only)
• ROC and Momentum

2. Manage risk

3. Market major indicators and other market indicators

• Majors: S&P, Nasq, DOW, NYSE composite
• Minors: ref strategy desk

4. Set Alerts and Triggers