Buy only at the three lines. Cap it at 100 shares. Leave when it closes below invalidation.
A green diamond means investigate, not automatically buy. Everything below is the discipline that turns a signal into a trade — and the list of reasons to walk away.
Before entering
Only consider the setup when all of these are true.
- A fresh green diamond appears.
- New Buy 1, Buy 2 and Buy 3 levels are displayed.
- Volume and liquidity are reasonable.
- The spread is not excessive.
- No unexpected earnings, FDA decision or other binary event is imminent.
- The realistic upside provides at least 1.5× the potential loss.
Entry plan
Three stages, fixed sizes, at the displayed lines only.
Do not chase between the lines and do not exceed 100 shares. Cancel unfilled orders when a new green diamond resets the levels.
Risk rule
Identify the invalidation price below Buy 3 before Buy 1 — not after.
If a daily candle closes below that level:
- Cancel remaining buy orders.
- Exit filled shares.
- Wait for a new green diamond.
(Full average − invalidation price) × 100 shares
Do not enter if that potential loss is unacceptable.
Profit and exit
- Purple line — the 25% target measured from your full average.
- Red line — the trailing sell line. It can rise, but it must never fall.
- Normal swing trades: exit after a daily close below the red line.
- Volatile or thin stocks: exit on an intraday touch of the red line.
- After selling, wait for a new green diamond before re-entering.
Skip the trade when
- The spread is too large.
- Price has already run well above Buy 1.
- Price already reached the red sell line.
- Volume disappears.
- The company faces delisting, reverse-split or financing risk.
- The next realistic resistance offers less than 1.5R.
- You cannot identify the invalidation price.
Quick checklist
Before buying
- Fresh green diamond?
- Buy levels reset?
- Invalidation below Buy 3 identified?
- Maximum loss acceptable?
- At least 1.5R available?
- Liquidity and spread acceptable?
- No surprise binary event?
While holding
- Follow the 10/30/60 scale-in.
- Do not chase or exceed 100 shares.
- Do not lower the red sell line.
- Follow your chosen touch-or-close exit rule.
- Re-enter only after a new green diamond.
Buy only at the three displayed levels, limit the position to 100 shares, exit if the setup closes below its invalidation level, and manage profits with the rising red line and the 25% target.
How LINEBOT applies this
The scanner fires only on a fresh diamond — the bar that becomes a new anchor — which is rule 1. Hits that do not offer 1.5R measured from the full average are dropped rather than shown, which is rule 5.
Tracked setups use the full average as their entry, so the R matches the risk formula in rule 3. The invalidation defaults to 3% below Buy 3; the plan says to identify it yourself, so treat that default as a placeholder and change it when you post.
Two honest gaps: the site resolves outcomes on daily bars, so the intraday-touch exit for thin stocks cannot be modelled. And the indicator draws the red line as a fixed +25% above the diamond low that only moves when a new diamond replaces it — it does not trail upward on its own, so the "never lower the red line" rule is yours to enforce on the chart.