Current trading methods

I am currently trading a method between day trading and swing trading utilizing strategies found on Trader X's site. His basic methodology can be found here.

Here is an actual trade that I took:

I have switched to 15-minute bars due to the frequent whipsaws found on shorter time frames. It seems with 15-minute bars real moves (that continue in one direction for the entire session) take place more often. The stocks that I want to trade must provide volatility and volume, price per share is not really a barrier.

First thing before each day's open, I check Briefing's "Gapping up, Gapping down" lists to scout out a list of potential stocks to trade each day. This number can range from about 10-12 during normal periods up to 25+ during earnings season. Each one is put onto its own 15-min chart with 4 per workspace on my Tradestation charting software.

To find potential entries, several conditions are sought out:

1. Most commonly is a consolidation area in the upper half of the OR (opening range) bar. The entry will be on a break of the opening range bar. The more hammer candlesticks in the consolidation the better. Hammer candlesticks look something like this:

Hammer candlesticks form when a stock moves significantly lower after its open, but rallies to close well above the intrabar low. This candlestick shows strength since the bears attempted to push the stock lower, but were met with an overwhelming amount of buying.

2. Other times stocks will gap one way, continue moving in gap direction, consolidate (with some hammers), and then begin a reversal.

My trades that follow will demonstrate the above mentioned rules as well as build upon them. The successful trader must change as the markets change.