For once, a question: would you trade a stock such this one ?
Basically I avoid penny stocks, but I really find this setup interesting. Note: the RS is really good.
The setup looks promising, but it's still Stage 1B currently. I'd say the Stage 2A breakout level looks to be a weekly close above 0.26 or more.
Thank you Isa.
Indeed, it looks as being still in stage 1. But to get the stock on the breakout, when it is starting the stage 2, shouldn't the entry stop order to be placed before the stage 2 starts ?
This actually leads me to a question. I work - accordingly with Weinstein's book - by placing stop orders before stage 2 start, so I can get the breakout when it happens (when the stage 2 starts). Now, by reading you guys, I have often the feeling that you don't enter your order before the breakout is confirmed by closure level and volume: this means that you only enter the day(s) after the breakout. Am I right ?
Indeed, it looks as being still in stage 1. But to get the stock on the breakout, when it is starting the stage 2, shouldn't the entry stop order to be placed before the stage 2 starts ?
This actually leads me to a question. I work - accordingly with Weinstein's book - by placing stop orders before stage 2 start, so I can get the breakout when it happens (when the stage 2 starts). Now, by reading you guys, I have often the feeling that you don't enter your order before the breakout is confirmed by closure level and volume: this means that you only enter the day(s) after the breakout. Am I right ?
I don't use buy stop orders as there are too many false breakouts and I'd lose all my returns in fees and I spoke to Weinstein about it a few years back as it's one part of the book that I wasn't sure on. See the Q&A as it's different advice for investors and traders http://stageanalysis.net/forum/showthrea...623#pid623
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(This post was last modified: 2017-02-13, 01:37 AM by kero.)
RE: European Stocks - Watchlist and Discussion
Ok, I see the point.
It's true that false breakouts are are really painful and I was thinking, recently, about the possibility of trading only confirmed breakouts. It can also be a way to avoid having lots of waiting orders which are never executed (which is a lot of work to handle). It makes it easier to select interesting positions.
I'll reconsider that now. Thank you Isa.
Just two related quick question:
1) in the investor method, do you wait for the weekly close, or the daily close is enough for you to decide wether to buy ?
2) Do you enter at the price level of the closing, or do you only buy at the level of the breakout (acting as in the pullback method) ?
(2017-02-13, 01:32 AM)kero Wrote: Ok, I see the point.
It's true that false breakouts are are really painful and I was thinking, recently, about the possibility of trading only confirmed breakouts. It can also be a way to avoid having lots of waiting orders which are never executed (which is a lot of work to handle). It makes it easier to select interesting positions.
I'll reconsider that now. Thank you Isa.
Just two related quick question:
1) in the investor method, do you wait for the weekly close, or the daily close is enough for you to decide wether to buy ?
2) Do you enter at the price level of the closing, or do you only buy at the level of the breakout (acting as in the pullback method) ?
1) I enter using the daily close, as the breakout could be on a Monday for example. But I look for it to have at least 3x the average daily volume and close near the high of the day. From the daily volume on the breakout you can usually estimate whether or not it reach the weekly 2x volume requirement, and then I use the weekly volume and close as a confirmation tool. If that isn't right then I'd exit the position. But that hasn't happened yet.
2) I try to get as close to the breakout point as possible, but depending on my work I don't always get to get in at the optimal time so will just enter on open the next morning if it's still within my 2x ATR stop loss range, which sometimes it isn't like SOU.L the other week which gapped open higher the next day, so I had to wait and see if it would come back into my target buy area,which it did a few days later. So it's always about making sure the risk is right, as missing breakouts is better than risking too much capital imo. Risk is always the first consideration.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
