Watchlist for Week of 3/6 - 3/10 + Notes
Inside Days - BABA, BBY, CFG, KO, M, PEP, QCOM, UNH
Inside Weeks - ADBE, CHWY, EBAY, KMX, LCID, MMM, NKE, SBUX
Inside Month In Force- AAL, CTRA, FCX, FMC, MCD, MRO, SLB
50% Rule Setups - LULU
Engulfing Days - KHC, XOM
How to play each setup mentioned above:
- Inside Day/Week/Month is played by watching for a break of the high/low of the inside bar. You enter long/short when a high or low is broken on the inside bar and set a stop at either 50% retrace of that inside bar, or a break of the opposite level. EX: Break of inside days high you go long and set a stop loss at the inside days low.
- 50% Rule setups are played usually on the monthly chart. When a stock breaks the high/low of the previous month and then retraces 50% of the previous candle, you can expect it to retrace the full 100% of the previous candle. You use weekly and daily setups to enter a position. EX: we saw a new high this month on "XXX" Stock and now it retraced 50%. I saw a 2-1 on the daily which is where I enter short.
- Engulfing day: Typically with engulfing days, the direction that the engulfing candle closes is the direction you watch for continuation. For example, if an engulfing candle closes green, then we can expect the next candle to be green as well.
Inside Weeks - ADBE, CHWY, EBAY, KMX, LCID, MMM, NKE, SBUX
Inside Month In Force- AAL, CTRA, FCX, FMC, MCD, MRO, SLB
50% Rule Setups - LULU
Engulfing Days - KHC, XOM
How to play each setup mentioned above:
- Inside Day/Week/Month is played by watching for a break of the high/low of the inside bar. You enter long/short when a high or low is broken on the inside bar and set a stop at either 50% retrace of that inside bar, or a break of the opposite level. EX: Break of inside days high you go long and set a stop loss at the inside days low.
- 50% Rule setups are played usually on the monthly chart. When a stock breaks the high/low of the previous month and then retraces 50% of the previous candle, you can expect it to retrace the full 100% of the previous candle. You use weekly and daily setups to enter a position. EX: we saw a new high this month on "XXX" Stock and now it retraced 50%. I saw a 2-1 on the daily which is where I enter short.
- Engulfing day: Typically with engulfing days, the direction that the engulfing candle closes is the direction you watch for continuation. For example, if an engulfing candle closes green, then we can expect the next candle to be green as well.
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