CDNS, EXPE, PBI, MBI, AMD
VSH, BBRY, SPN, GG, CHKP
SPN, SU, VSH*, MS*, SWY
JCP*, CPN, SPN, PMT, PHM, HRB, NR
ANGI, ARNA, SVM
NPSP, DHI, COF, MNKD, JPM
AEM, BP, USO, UPL
Note: Some of my earlier annotations will have errors in them because I recently began (i.e. I was a newbie at the time.) tracking stocks using this strategy.
I'll continuously check them to make sure everything is in order.
9/20 EMA (5 minute) Strategy
Anticipating the bottom of the pullback and finding a precise entry and exit/stop.
How to Play
#1. There must be an uptrend. Cleaner (no rollercoaster candles) the better.
#2. A possible entry presents itself when a red candle (AKA Dip Candle) closes between the 9 and 20 EMA. It must not penetrate the 20 EMA. If it does, the play is invalidated. However, there is one exception (as of 5/1/13):
#3. A (buy) 'Trigger Candle' occurs when price goes above the 'Dip Candle'.
#4. The stop with be the 1c below the low of the Dip Candle. (The stop will move along with the 20EMA as time progresses. See #5. However, it's really about your risk tolerance and preference.)
#5. After +10 minutes, your stop will be the 20 EMA. The psychology is, "Bidders better be riding the 20 EMA. If the stock falls back down to the 20 EMA and no one is there to support it, I'm out."
Annotated Image Explained
#1. You will see two white arrows. The first arrow is the DIP CANDLE. This candle, should this become a play, will dictate the stop. (The stop will be .01 under this candle.)
#2. The second arrow is the TRIGGER CANDLE. This occurs when the price goes above the high of the DIP CANDLE. For example, if the DIP CANDLE'S high is 20.05, then your buy entry is 20.06.
#3. (For a Delayed Trigger Candle entry) The red arrow points to the candle which the stop will be based on.
Variation of the 9/20 EMA Strategy
Other Things to Keep In Mind