Class: Bullish, Day, Reversal, Early

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Bullish

Focus on stocks that are in a longer term up trend and have recently pulled back to a support level.
Avoid stocks that are in a steep downtrend of have corrected more than 30% in the last three weeks.

These situations are very risky and should only be considered by seasoned traders.

chart

Day

The sell off is temporarily overextended and the probability of a nice, quick bounce is high.
Use tight protective stops.
Closely monitor the positions.
Exit the trade if the move does not materialize in a day or two.
Seek small, quick, consistent profits.

Part 1 | 2 | 3