ENTRY GUIDELINES

PLEASE NOTE: The following is used if you have real-time data. The key is to have positions when the Internals and Sectors agree. The following is just a means to get the best possible entry position and is not a requirement for the method!

Once the Internals, Sectors and a Quality Stock is chosen, a proper entry point is the next step.

I use the 5-minute chart on F9 in TeleChart 2005 (Platinum Version) to do this. The setting for this either came with your CD or can be downloaded from my website (www.dukestrading.com). If you want to use something else, you want:

A Line chart of the 5-min price.

10-bar simple moving average.

Bollinger Bands - 20 bar, 20 StdDev.

ROC - 10-bar invisible; MA5 simple and MA3 simple(show these)

You will also want another chart (in TC2005 it is the center one) set to Wilder's RSI: Period5; MA 1 - Simple MA

In the lower chart you want Wilder's RSI: Period 10; MA 5 - Simple MA

On the 5 minute chart, when the price gets to the BB channel, enter opposite to that direction, provided the RSI10;10 chart agrees with the position. By agreeing, the RSI10;5 is at 25 and just has started to turn up; this would be a buy; or RSI10;5 is at 75 and started to turn lower, is a sell. For example, let's say that the price is at or above the upper BB channel and the RSI10;5 has peaked at 75 or greater and it has started lower, IT IS TIME TO SELL! Longs are just opposite. RSI MUST BE AT AN EXTREME OR PASS! Like wider BB Band at signal.

I prefer to enter when the price is at either BB channel and gettting better, RSI5;1 is also at an extreme and RSI10;5 agrees that the stock is oversold or overbought, ROC is agreeing with position and the 1 and 5-minute chart agree with the position. When it looks right on F9, use F11 - 5-min chart (This is is same chart setup as F1, but it is set to 5 minutes. Use the proven MACD, RSMA and OBV entry system, as described in my eBook and videos, for entry. Opening gaps provide false signals, so avoid all gaps.

I also use F4 1-minute chart. I want TSV above MA13 and want MS above 22MA for Longs. The key is to have both get extremely above or below the MA and start to move back to the direction of the MA to enter. This confirms the entry decision if F9 and F11, have already suggested a position. This chart might not help, but if we have another signal, the better it is.

Stop Loss is anytime the price crosses the 10-bar MA on 5-min. chart contra to the position. Take profits at BB channel or a turn of RSI10;5.

This is the same chart setup that is used for the daily VIX. I have covered that before, but his setup works very well for entering an individual stock. I also use this method for any entry or exit, I make.