1-PAGE TRADING PLAN (30 MINUTE SCALP TRADER) Issue 1.1

USE MARKET CYCLE ANALSYS ON EVERY CHART…AND EVERY TIME FRAME KEEP IT SIMPLE…

Futures Pre-Market Macro Analysis

Review Daily E-mini Futures NASDAQ, S&P, Dow and

Russell E-mini future’s contracts candlestick charts.

Using multiple timeframes (for example, 5/15/30 minute) and a top-down approach, Start with the Daily charts by looking for price action

(PA) and candlestick chart patterns to support or not the trend direction.

Review futures/stocks from hot list i.e., Top 25 lists that are gapping up/down (at least $0.50+ / 1k+ shares)

Identify futures/stocks with most significant shock value to supply/demand on daily charts. Add futures/stocks to watch list.

Shock value (i.e., look for “significant” price action, M & W neckline breaks/candlestick patterns using multiple time frames)

Bull / Bear Trap Plays, Bullish / Bearish Gap into Prior Bar, Trend Continuations Use “2 & 5 min Charts” first 30 minutes

1) Momentum & Scalp Trading

Using watch list of 10-15 NASDAQ stocks, look for stocks that mirror the NASDAQ, S&P, Dow and Russell 2000 E-mini

future’s contracts on 5/15 min charts w/ patterns for momentum trades. (No what phase each stock is in!)

BUY futures or stock setups when above r20ma and r200ma and E-mini contracts above r20ma

SHORT futures or stock setups when below d20ma and d200ma & E-mini contracts below d20ma

Rules for Scalp Trading by Leroy Rushing

1-PAGE TRADING PLAN (30 MINUTE SCALP TRADER) | Issue 1.1 2

PA is greater than r20MA and PA > than Prior Day High Go LONG (blue)

PA is above the intra-day open and PA > r20MA and PA < Prior Day High Go LONG (orange)

PA is below the intra-day open and PA < r20MA and PA > Prior Day Low Go SHORT (magenta)

PA gaps above Prior Day High and PA below intra-day open and PA above/below 20 MA Go SHORT (purple)

PA gaps below Prior Day Low and PA above intra-day open and PA above/below 20 MA Go LONG (light orange)

PA is below the intra-day open and PA < d20MA and PA < Prior Day Low Go SHORT (dark red)

PA is below the intra-day open and PA < d20MA and PA < Prior 2 Day Low Go SHORT (brown)

After a series of multiple [Blue Bars] When …

♣ PA changes color (i.e., Orange, Magenta, Dark Red or Green) usually indicates…

♣ Flag Pattern, Broadening Pattern or Wedge Pattern

♣ Wait for PA to retrace 38%-50% of the multiple Blue Bars move

Go LONG After a series of multiple [Magenta Bars] When…

♣ PA changes color (i.e., Green, Magenta, or Orange) usually indicates…

♣ Flag Pattern, Broadening Pattern or Wedge Pattern

♣ Wait for Price Action to retrace 38%-50% of the multiple Magenta Bars move

Go SHORT

After a series of multiple [Orange Bars] When

♣ PA changes color (i.e., Magenta, Dark Red or Green) usually indicates…

♣ Flag Pattern, Broadening Pattern or Wedge Pattern

♣ Wait for PA to retrace 38%-50% of the multiple Orange Bars move

Go LONG After a series of multiple [Dark Red Bars] When …

♣ PA changes color (i.e., Green, Magenta, Orange) usually indicates…

♣ Flag Pattern, Broadening Pattern or Wedge Pattern

♣ Wait for PA to retrace 38%-50% of the multiple Dark Red Bars move

Go SHORT

Blue Magenta

Dark Red Orange

1-PAGE TRADING PLAN (30 MINUTE SCALP TRADER) | Issue 1.1 3

2) Mid-Day Doldrums

Continuously review “Gap list” and look at “30 min Breakouts” on stock list

Limit trading to managing existing trades; unless

“strong” trending market (Phases 2 or 4) exists; supported by market internals then

Use 15 min charts with mostly non-overlapping candlesticks (i.e., clean)

Buy Phase 2 “clean” higher lows setups or

Short Phase 4 “clean” lower highs setups

3) Late-Market (Final phase) Trading

Review following scans for setups

Daily “Gap Plays” and primary “Watchlist” lists for potential late day breakouts &

Review 6 / 15 / 30 min Breakouts for futures/stocks continuing to trending

Purple Brown

Lite Orange

1-PAGE TRADING PLAN (30 MINUTE SCALP TRADER) | Issue 1.1 4

4) Setups, Patterns & Targets

Using 6 / 15 / 30 min High/Low Strategy:

BUY on p/b when futures or stock breaks 30 min High & above 20 ma

r20ma > r200ma or r20ma & extended below 200ma

SHORT when futures or stock breaks 30 min Low & below 20ma

d20ma < d200ma or d20ma & extended above d200ma

( W – pattern) BUY futures, stocks and Options (Calls) when transitioning from Phase 1 to Phase 2 (up trending) after they pull back & retest minor support of Phase 1 breakout;

Wait for retest of minor support and PBS for entry…Target previous high for profit taking

( M – pattern) SHORT futures, stocks and Options (Puts) when transitioning from Phase 3 to Phase 4 (down trending) after they pull back & retest minor resistance of Phase 3 breakdown;

Wait for retest of minor resistance and PSS for entry…Target previous low for profit taking

5) General Trading Guidelines: Only use the following as a part of trading:

Never enter futures/stock/option position unless entry, trailing stop, and target are known in advance.

Before entering any trade, confirm what Phase futures/stock is in.

Three (3) bar sell rule on any scalp trading positions that don't realize any profit. (no exceptions)

Never trade against the Broad Market phases (i.e., NO Counter trend trading)

6) Money Management:

Use a capital allocation or money management calculator to determine the position/share size for each futures/stock trade. Never rr

For options, never purchase more than 10 contracts in any one position

Use “scale in” strategy to enter big positions; maximum of (10) contracts on initial entry

Losses

Never trade futures/stocks that have an average daily volume of less than 500,000 shares.

The maximum loss per trade on futures/stocks shall not exceed 5.0 % of the total working capital.

Once a futures/stock trade reaches 1/2 the profit target, move stop loss immediately to breakeven.

It is understood that losses are an unavoidable aspect of trading and should be considered nothing more than the cost of doing business. The operator will strive to maintain this objectivity at all times.

Profits

As a futures/stock/option trade is executed, a trailing stop loss must be established based on PBS or PSS pivot and never decreased.

Until trading habits or consistent, small trading profits will be taken until further notice. Attempting to hit homeruns will continue to lead to strikeouts and failure.

Must contribute 10% of all profits to the insurance policy fund for catastrophic losses.

This plan is a living document and it is expected to change over time as the operator becomes more proficient. However, no changes are to be made on the spur of the moment, during the course of a trading day, or while the operator is holding a position. Note: Sharing this document is a violation of Trading EveryDay policies and all access to Trading EveryDay products and services will be terminated.