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Look for strong price signals: channel breakout, head-and-shoulders, good range trades. (I used to include Golden Cross, but it let me down once too often. Maybe I should give it another try, as that was a few years ago.) Always confirm the price signal with another indicator (RSI or volume). If in doubt check a third indicator. If that is not conclusive, don't trade. Ensure the potential profit is at least 2x the stop-loss level, 3x or more if possible.Β Trade in lots of [5% my portfolio size]. Place the stop-loss at the same time as the order. Do not ever, ever break these rules. The market can stay irrational longer than you can stay solvent. If you can't find a trade, don't try to make one.
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A.Z Penn (Technical Analysis for Beginners: Take $1k to $10k Using Charting and Stock Trends of the Financial Markets with Zero Trading Experience Required)