Slim Jims
                       This is a tight consolidation pattern that will  haveyou buying or selling new intra day highs or lows. It  will  also  have  youentering a reversal trade of the day’s extreme move (See  BBY  Chart  below)or a continuation entry from a consolidation above or below  the  days  highour low. (see SPY Chart)                       The longer and tighter the  consolidation,  the  morepowerful the breakout. If you see these consolidations in the first hour  oftrading they won’t be as long, but if it’s a narrow  range  and  are  risinglows (sells reversed) as it bumps up against a price, be ready  for  a  goodfirst move to new highs or lows.                       If you can interpret the stock dynamics that we  haveoutlined, (week 3) as you  watch  the  dynamic  time  and  sales  ticker  inaddition to getting a decent feel for the market dynamics prior to  enteringyour trade then Slim Jim is your  main  man.  This  pattern  will  take  youthere.                       The first thing you must do is load  up  your  chartswith as many of your high RS value stocks with strong ADX and  +DMI  >  -DMI(reverse if you are just looking for shorts). After the  first  3  or  4  5-minute bars start flipping through your charts to see what  is  setting  up.This process takes place all day long. There is never a day that  you  don’thave probable trade candidates.
                       BBY
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                       BBY opened at 60, made a high of  61  3/4,  and  thentraded down to 56 5/8. It then entered a long, tight  consolidation  between56 5/8 and 57 3/8. It was a 37 bar range from  11:30  AM  to  2:30  PM.  Themarket started acting really good as the S&P futures started to run.  Buyerscame immediately to an oversold BBY. It was a fast move, (Bars 1 and 2)  butthe entry proved very rewarding as the stock and S&P 500  took  off  to  theupside.                       All you did was identify the pattern,  mark  down  inyour trading plan that you would enter 1/8 above  the  trading  range  high,and decide based upon your own parameters what your  money  stop  would  be.The entry was of course predicated on whether the market  was  rallying  andwhether there was buying pressure on the stock.                       This was a strong move and  it  didn’t  re-enter  therange possibly stopping you out. If that happens, be  prepared  to  enter  asecond time out of the range.  Second  entry  is  almost  the  norm  in  OTCstocks.                       Remember, always look at your daily chart (see  chartbelow) in conjunction with your 5-minute charts. It will  tell  you  whetheror not there are any inflection points that might help or hinder the trade.
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                       As you see on Chart 2, BBY moved from  a  low  of  401/2 to a high of 80 1/2. The 56 5/8 low on the  5-minute  chart  was  a  60%retracement of the  entire  move.  Institutions  are  well  aware  of  theselevels, and maybe a few decided to add to  their  position,  which  was  thefirst opportunity after such a powerful advance.                       When a Slim Jim forms at the high of the day  and  itcoincides with a key inflection on the daily chart you  definitely  want  totake  the trade.  This pattern will also take the form of a rising wedge  orascending triangle if you would prefer names, but the bottom line to  me  isthat it is bumping up against  a  key  price  level  with  rising  lows  andclosing above mid point of the closest bars.                       The following example of  BMY  is  a  Slim  Jim  withrising lows that breaks out the following day at  the  same  time  it  movesabove a key inflection point on the daily chart.