Install docker

sudo yum update -y
sudo yum install docker
sudo service docker start
sudo usermod -a -G docker ec2-user
docker info
sudo chkconfig docker on

Install docker-compose

sudo curl -L "https://github.com/docker/compose/releases/download/1.27.0/docker-compose-$(uname -s)-$(uname -m)" -o /usr/local/bin/docker-compose
sudo chmod +x /usr/local/bin/docker-compose

if you show permission denied error

$ docker ps
Got permission denied while trying to connect to the Docker daemon socket at unix:///var/run/docker.sock: Get http://%2Fvar%2Frun%2Fdocker.sock/v1.39/containers/json: dial unix /var/run/docker.sock: connect: permission denied
$ ls /var/run/docker.sock
/var/run/docker.sock
$ ls -la /var/run/docker.sock
srw-rw---- 1 root docker 0 Jan 23 20:50 /var/run/docker.sock
$ who
ec2-user pts/0        Jan 23 20:01 (12.197.211.18)
$ sudo chown "$USER":"$USER" /var/run/docker.sock -R
$ ls -la /var/run/docker.sock
srw-rw---- 1 ec2-user ec2-user 0 Jan 23 20:50 /var/run/docker.sock