Entry Rules¶
Core Indicators¶
- Lux Algo: Check multiple timeframes (High to Low). Good for premarket entries (catch initial pump) but requires confluence.
- ADR (Average Daily Range): Price moves only average of its ADR (1 day).
- Price Action: Understand zones and trends.
Daily Setup Criteria¶
Daily Timeframe Entry Conditions
- Lux Algo Green
- EMA (5, 9, 21) alignment
- PVT Green
- Lux Oscillator: No divergence
- PVT turns Red to Green
- EMA (5, 9, 21) converging or turning Red to Green
- Bonus: High volatility on Lux table
1-Minute Setup Criteria¶
Intraday Entry Conditions (Strict)
- Wait for 12 candles
- Check if price moved up by min of ADR after 1-3 (5 min) candles
- Lux Algo Green
- EMA (50, 100, 200) alignment
- PVT Green
- High Lux Volatility (Strict requirement)
- RSI above ATR line (Strict requirement)
MACD Scalping Setup¶
Daily MACD¶
| MACD Setting | Condition |
|---|---|
| 5, 8, 9 | > Signal line |
| 13, 21, 9 | Green > Signal |
| 34, 144, 9 | Ideally Green |
Weekly Confirmation¶
- Confirm setup with weekly chart
- MACD crossing zero line (from below to above) is the best signal
Underlying Trend / Screening¶
Minimum Requirements¶
- Stock above 200 Day MA
Nice to Have¶
- 9 Day MA above all other MAs
- Higher highs pattern (for longs)
Finviz Screen¶
- Market Cap: > $2 Billion
- Dividend: > 0
- Result: ~40 big stocks to focus on
Context Checks¶
- Sector performance
- Analyst price targets
- Recent news
Gap Rules (Zanger)¶
Gap Guidelines
- Never chase gap up/down > 2-4% unless coming out of large base
- If big move previous day, check 15/30m ORB to see if holding
- Use 15m ORB on stocks gapping > 5%
- Respect premarket gap-up (2-4%, not crazy ones)