Overnight-hold entry and exit construction

Afternoon entry and a short overnight clock

The construction enters in the afternoon session between 1400 and 1545 Eastern time. It typically closes the next trading day, often before noon. The position is held overnight, but it is usually open for only two to four hours of session time.

Daily candidate scanning starts around 1300 Eastern time and favors setups chosen for a high chance of follow-through on the day after entry. Those clocks are the first Rule-based entry constraints.

How the watchlist is rebuilt

A monthly screen keeps names with price between $5 and $75, average volume greater than one million, and beta greater than 1.5. From that screen the primary watchlist is the 50 highest-beta names. About a dozen names are replaced at each rescreen.

Hammer, morning-star, and evening-star filters

The bullish hammer long requires an entry-day hammer longer than the prior candle, near support, and daily stochastic %K (5-3-1) at or below 30. When several hammers appear, above-average entry-day volume and bullish RSI or MACD divergence are preferred.

The morning-star long requires a three-bar sequence of a red close in the lower third, a middle bar that is a doji, a hammer, a spinning-top, or a long-lower-shadow candle, a green close in the upper third, and stochastic %K below 40.

The evening-star short is the inverse three-bar sequence: a green close in the upper third, a middle bar that is a doji, a hammer, or a long-upper-shadow candle, a red close in the lower third, and a corresponding overbought stochastic filter.

On-balance volume on breakdowns

On-balance volume is used as a confirmation signal on breakdown structures. A break below support is treated as a shortable condition only when On-balance volume also confirms the move.

Profit limit, next-session close, and the delayed gap stop

A default profit limit is placed about 3% above the entry-day close for longs, or about 3% below it for shorts. If neither stop nor target is hit, the overnight position is closed at the end of the next session unless it is deliberately converted to a swing hold with a trailing stop.

Adverse opening gaps are not flattened immediately. After 10 minutes the first 10-minute high and low are marked at 0940 Eastern time. The position is exited only if the long's 10-minute low or the short's 10-minute high is taken out. That delayed mark is the Stop-loss order used after an adverse gap.