Reviewing The Charts
Now we begin reviewing the charts. At this stage, you already have a filtered list of stocks. The goal is to evaluate them using a clear checklist and continue eliminating anything that isn’t fully set up.
What to Do
1. Start with the Highest Backtest
▪ Begin the chart review at the top of the list, starting with the stock that has the highest backtest, and work your way down.
2. Use This Checklist
▪ No OVTLYR Blocks in the way
▪ No earnings in the next 3 days
▪ Price is above the 10 EMA (for longs)
▪ Price is above the prior day’s low (for longs)
▪ Price is below the prior day’s high (for shorts)
Examples
○ Coke – Short Setup Example
▪ No OVTLYR Blocks in the way
▪ Price is below the 10 EMA
▪ No earnings in the next 3 days (as shown on TradingView)
▪ But price is above the prior day’s high
▪ This is not a valid setup and should be eliminated
○ AMD – Long Setup Example
▪ Price is above the 10 EMA
▪ Price is above the prior day’s low
▪ No earnings in the next few days
▪ No OVTLYR Blocks in the way
▪ This is a valid bullish setup
Reminder
The idea is to continuously eliminate all the stocks that are not set up in every possible way. This gives you the best possible start to each of your trades.
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