Class: Bearish, Day, Continuation, Early

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Bearish

Focus on stocks that are in powerful short-term downtrends.
Look for stocks that have steady (not choppy) downward price movement.
The stocks should not have rallied back more than 5% off of their recent low. Ideally, they have been moving side ways and appear to be resting.
The stocks should be below their 20-day moving average.
Sell-offs should be accompanied by higher volume.
A weak market may apply additional downward pressure to these stocks.

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Day

The powerful down trend may lose its steam quickly. Get in, place protective stops and as the stock drops, trail the stops lower.
If the stock produces nice gains, take partial profits and reduce overnight exposure.
Seek small, quick, consistent profits.
Exit the trade if the market drops and the stock does not.
Exit the trade if the move does not materialize by the end of the next day, or the stock looks like it is finding underlying support.

Part 1 | 2 | 3