Definitions

50SMA = 50 day simple moving average

LH5 = Lowest High of the past 5 days
ATR(10) = Average True Range of the
past 10 days
ADX(14) = Average Directional Index
based on past 14 days
Swing Low = Any low with at least 3
higher lows than the Swing Low day
low and 3 higher highs than the Swing
Low day high on both sides of the
Swing Low day
Setup Rules
A.50SMA is going down
A.
B.Point 3 Low < a Swing Low (Point 1)
B.
C.LH5 > (Point 1 Low - ATR10 * 0.50)
C.
D.Close
> LH5
D.
E.ADX14
> 20
E.
Entry & Exit Orders
Entry Order: Buy at close of setup
day + ATR10 * 0.20 Limit
*
Initial Stop: Sell at Point 3 Low *
0.995 Stop
Trailing Stop: Sell at LL2 * 0.995
Stop
Profit Target Exit: Exit 1/2 position
at Entry Price + 2 ATR(10) Limit
!"#$%&'()*+*,%"-&).*/012*3145*
!"#$%&'()*+*,%"-&).*/012*3145

666578%9:)78.):%$54";*

Definitions
*

50SMA = 50 day simple moving average

HL5 = Highest Low of the past 5 days
ATR(10) = Average True Range of the
past 10 days
ADX(14) = Average Directional Index
based on past 14 days
Swing High = Any high with at least 3
lower highs than the Swing High day
high and 3 lower lows than the Swing
High day low on both sides of the
Swing High day
Setup Rules
A. 50SMA is going up
B. Point 3 High > a Swing High (Point 1)
C. HL5 < (Point 1 High + ATR10 * 0.50)
D. Close < HL5
E. ADX14 > 20
Entry & Exit Orders
Entry Order: Sell short at close of
setup day - ATR10 * 0.20 Limit
Initial Stop: Buy to Cover at Point 3
High * 1.005 Stop
Trailing Stop: Buy to Cover at HH2 *
1.005 Stop
Profit Target Exit: Exit 1/2 position
*
at Entry Price - 2 ATR(10) Limit
!"#$%&'()*+*,%"-&).*/012*3145*
!"#$%&'()*+*,%"-&).*/012*3145

666578%9:)78.):%$54";*