IW's Trading System

1. STOCK SCREEN

Primary
a. Volume > 2000,000
b. Price < $6.00, preferably <$3.00 Secondary (still developing)
a. Fundamentals?

-----------------------------------------------------------------------------------------------------------

2. DETERMINE MARKET NATURE
- Downtrend, Uptrend, or Trading Market

Downtrend
a. ADX > 30
b. Price below Fast Moving Average

Uptrend
a. ADX > 30
b. Price above Fast Moving Average

Trading Market
a. ADX cross Fast Moving Average often.
-----------------------------------------------------------------------------------------------------------

3. DOWNTREND MARKET

3A. IW's FAST PROFIT GRAP - DAY TRADE SETUP

Primary Signal
a. Candle Bullish Reversal Signal on daily charts

Confirmation Signals
a. Daily Stochastic -> neutral or better
b. OBV -> neutral or better

On T-Day Signals
a. News -> neutral or better
b. Foreign Markets -> neutral or better
c. Own Market -> neutral or better

Precise BUY! Signal
- Intraday Stochastic -> oversold

Profit Taking SELL! Signal
- Intraday Stochastic -> overbought
- Earn $500

Stop Loss SELL! Signal
- Loss of $200

Risk-Reward Ratio
- 1:2

-----------------------------------------------------------------------------------------------------------

3B. TONI TURNER's DOUBLE GOT 'EM - SWING TRADE SETUP

a. Stock experienced a downtrend on a daily chart.
b. Price rebound. Then, no less than 8 days later, price retests the low.
c. If the stock holds its low and reverse, we will buy when it trades a few cents above the high of retest day.
d. Once in, initial protective stop will be establish just under low price of entry day.
e. Initial profit target: prior high (resistance)

-----------------------------------------------------------------------------------------------------------

3C. JOHN CARTER's Fake and Break - SWING TRADE SETUP

a. Look at stock making 52-weeks low
b. Look for 7-RSI bullish divergence
c. Look for decrease in volume
d. Long the stock after it close above 52 week low
e. Exit - Below Key Resistance OR once price go below the low of the Highest day

-----------------------------------------------------------------------------------------------------------

4. TRADING MARKET

still figuring out - use more momentum indicators? Moving average envelope?

4A. TONI TURNER's STEALTHY SIDEWINDER - SWING TRADE SETUP

a. Stock trades in an uptrend and currently consolidates sideways in a wedge, horizontal flag or ascending triangle.
b. Price pattern trades just above the 20-day MA, and ideally, above the 50-dawy MA.
c. Stochastic and OBV agree.
d. Buy initial position when stock begins to rise out of consolidation on healthy volume. Or buy after the stock breaks through the upside horizontal resistance line, or both.
e. Place an initial stop under the edge of the wedge.
f. Set profit target the reflects initial risk reward at 1:3 or better.

-----------------------------------------------------------------------------------------------------------

5. UPTREND MARKET

still figuring out - use more trend indicators?

5A. TONI TURNER's MOVING AVERAGE LEAPFROG - SWING TRADE SETUP

a. Stock experienced a uptrend on a daily chart.
b. After a move up, price pulls back in an orderly fashion, to its 20-day and 50-day moving averages.
c. Bonus: price culminates the day in a small range candle.
d. Check the stochastic for buy signal and OBV for positive action. (Stochastic in mid range and below. OBV at least neutral)
e. If tomorrow the stock opens in positive territory above its 20-day and 50-day moving averages, buy when it trades $0.05 to 0.10 over today's high.
f. Once in, the initial protective stop will be establish just under low prior of entry day.
g. Initial profit target: prior high
h. Risk reward ratio should be 1:3

-----------------------------------------------------------------------------------------------------------

5B. DR ALEXANDER ELDER's IMPULSE SYSTEM - POSITION TRADE SETUP

a. Use 13-EMA and 12-26-9 MACD-Histogram, on both daily and weekly chart
b. Buy -> All signals give BUY signal (rises)
c. Sell -> All signals does NOT give BUY signal (rises)
d. Use trailing stoploss

- Note: Can improve sell signals

.