A pre-trade checklist that requires rule and fundamental agreement

The checklist is the decision process

The archive presents combining chart rules with fundamental context as useful once the holding period stretches beyond a day or two. The checklist process is a fixed pre-trade sequence. It turns a candidate into an allowed entry, a rejected entry, or an explicit decision not to trade.

Three steps from scan to permission

The first checklist step is a mechanical scan for names that already meet predefined entry rules, such as a stochastic relative-strength buy signal inside an established uptrend. That rule-based entry is a predefined technical trigger. It only places a name on the review list.

The second step shortens that list with a fundamental overlay: the last three quarters of earnings and revenues, trailing and forward price-to-earnings, price-to-book, price-to-sales, short interest as a percent of float, 12-month insider buys versus sells, and free cash flow. This second screen of earnings, revenue, valuation, insider, and short-interest conditions is used to confirm or cancel the technical nomination.

The third step is the agreement filter. A trade is allowed only when the rule-based technical picture and the fundamental overlay agree. Mixed readings are treated as a reason to stand aside.

Index charts as regime caution

Index charts can act as a regime overlay. Money-flow divergence from price, a completed head-and-shoulders structure, a long-term trendline break, and a 12-month average crossing below a 60-month average were all used as reasons not to assume a durable bottom. These longer-horizon index or market-state readings are regime caution. They judge whether a single-name signal is being taken with or against the prevailing backdrop.

When a technical buy is not enough

A 10-period stochastic relative-strength buy signal was treated as insufficient once revenues had fallen for three quarters, earnings were deeply negative, insiders were net sellers, and short interest exceeded 5 percent of float.

A short-interest reading above 5 percent of float, especially after a sharp recent increase, is framed as a drag that can mute good news and amplify bad news.

Better matched to weeks or months

The full checklist is described as impractical for very short holding periods and better matched to staying with a directional trend for weeks or months.