Peter process short version

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Simple outline of steps:

1) Premarket: review http://www.nasdaq.com/extended-trading/premarket-mostactive.aspx (look at most advanced and most declined lists), https://www.barchart.com/stocks/most-active/daily-volume-leaders (sort by clicking on % at top) & HB picks. List of premarket stocks of interest are noted at 8:45a, 9:00a and 9:15a.

a) Big premarket volume (news or earnings) >50k shares.

b) Price $10 to $35-$40/share.

c) Price move of at least 4% to 10% (but not more than 12%).

2) Mark support and resistance using HLC bars from 30, 60 min and daily charts.

3) Watch futures to trade with the market trend (money.cnn.com &  bloomberg.com/markets/stocks/futures).

4) Track first 4 (to 10) candlestick bars on 5 min chart.

a) Mark highest open and close of all bars from 9:30 to 9:50 and not later than 10:20 with trend line.

b) Look for price movement consolidation like bull wedge, doji candlestick, etc.

c) Need volume in excess of 200-250k shares by 9:50a (or excess of 500k shares by 10:20a) for liquidity to easily trade share lots.

5) Look for engulfing candlestick and price above 10MA after consolidation; or, look for bar up and another bar up to confirm break/move above high trend line (long) or below low trend line (short).

6) Look for narrow/tight bid-ask spread (indicates stock traded frequently).

7) Confirm using Stochs 15,3,3 cross up (long) or down (short) on 5min and/or with 1,2,and 15min charts if 5min indicates overbought (long) or oversold (short) on a price break trend lines and 10MA.

8) Enter trade limit order (or market order if tight bid-ask spread with heavy volume). Watch price action above 10MA (long) or below 10MA (short).

9) If price action is sharp movement up (long) or down (short), sell on price pullback breaking 21MA; otherwise, sell if price breaks 10MA. Confirm with Stochs 15,3,3 on 5min (and/or with 1,2, and 15min charts -- as noted above) -or- move stop loss (long and short) based upon support price lines setup in step #2 or points you see along the way.

10) Exit trade no later than noon-12:30p before Wall Street goes to lunch or continue moving stop loss.

Return is based on 10 trades of dollar amount gained divided by dollar amount lost. Goal is 3 or better.