1. Chart reading is not an exact science. Therefore, stop loss limits must be used to prevent irrecoverable losses.

2. Buy into support and sell into resistance, but pay real close attention to how prices reach those levels.

3. Flag type momentum with tight consolidation tends to lead to breakthrough. Exhaustion moves tend to lead to reversals.

4. Gaps are very potent support and resistance levels. Pay real close attention to where they are at on the charts.

5. Not all gaps are created equal. Not all gaps are to be filled in short terms. Do not fall into the wrong gaps!