[isatrader]

Page 287 of the book mentions the "new high-low indicator". Stan much prefers to use this indicator when it includes common stock only. Anybody know where I can find this indicator/info for common stock only? Stan mentioned Investors Business Daily and MG Financial as sources, however, I'd like to get the info for free.

Try https://www.barchart.com/stocks/momentum maybe

[Red Barron]

Thanks. It is only for the daily 52 week highs and lows, not the weekly, but still, I *think* it only includes common stocks, so that's preferable. Here is a link to a Barron's web page that provides what *might* be the weekly 52 week highs and lows. However, I think it includes all types of stocks, not just common stock.
http://www.barrons.com/public/page/weeklyhighslows.html

For this long term market indicator, and I think a couple others in chapter 8, Stan advises to plot them vs an index, typcially the DJIA, on graph paper. This isn't 1988 anymore and I'm wondering if anyone could recommend software that would make plotting this indicator easier? I don't want to have to resort to a pencil and graph paper if I don't have to.

[pcabc]

Thanks. It is only for the daily 52 week highs and lows, not the weekly, but still, I *think* it only includes common stocks, so that's preferable. Here is a link to a Barron's web page that provides what *might* be the weekly 52 week highs and lows. However, I think it includes all types of stocks, not just common stock.
http://www.barrons.com/public/page/weeklyhighslows.html

For data it is worth looking at http://unicorn.us.com/advdec/. I assume it is everything, not just common stocks, but source of data are useful.

For this long term market indicator, and I think a couple others in chapter 8, Stan advises to plot them vs an index, typcially the DJIA, on graph paper. This isn't 1988 anymore and I'm wondering if anyone could recommend software that would make plotting this indicator easier? I don't want to have to resort to a pencil and graph paper if I don't have to.

I rolled my own charts, which takes significant time and effort. But that does not help you.

[badcharts]

Hi Isa,

Using this post to ask some more questions about logarithmeticvs arithmetic.

On Stocktwits, you said log scale helps in indentifying stages 1 and 3. Can you give me pointers, things you look at? I've been flipping on and off log and can't seem to notice much difference, other than high flying stocks have the hockey stick shape attenuated. I might be going blind....

Hence my second point, I do see the value of log scales to connect more rapidly the dots to form a Stan trendline. See my Twitter post here: https://twitter.com/badcharts1/status/97...3419164672

Yet, when I look over the charts in Stan's book, he seems to only use arithmetic.

Thanks in advance!

Regards,

PAtrick

I noticed that the trend line from your weekly chart is sharper than the stockchart weekly chart. Your weekly trendline could reach $2 but stockchart is around $1.7. Does it make difference?

I'm not sure what you mean. My chart has the same logarithmic scale as yours does and also I didn't draw a trend line on it?

But either way, trend lines are always subjective, so I tend not to use them personally and instead use the 10 week MA and 50 day MA in their place, and watch how stocks react around those levels. So currently for MPET the 10 week MA is at 1.91 and the 50 day MA is at 1.83 and yesterday was the first time the 50 day MA had been touched since the initial Stage 2A breakout began in February.

I think you've got your stop in a reasonable spot below the April swing high of 1.72 and the 50 day MA of 1.83, as you'd want to see it find support around that area.

thanks for confirming my method. It helps in great deal as I am learning Stan's method.

BTW, You didn't draw the trendline but it is there when I connected the three point in your chart, the line ends around $2. Hence my question.

I often found myself uncertain the timing of selling when the stock remains bullish. Then I gradually learned to use trendline , previous support level to shave my positions a little. Thanks for bringing up the 10 week MA as another measure for selling as I just vaguely remember it from the technically speaking book now.

[isatrader]

Hi Patrick, you can use either scale. I’ve just always found stage 1 much easier to identify with a log scale personally, as it tends to get very condensed with a standard scale, especially on stocks that are coming out of a prolonged stage 4. But it’s a personal preference and not a requirement of the method. So if you are happy as you are, then stick with a standard scale.

[badcharts]

Thanks for your input. Will continue to fiddle around with both and see how I can incorporate advantages in my framework,

Regards,

Patrick

Hi Patrick, you can use either scale. I’ve just always found stage 1 much easier to identify with a log scale personally, as it tends to get very condensed with a standard scale, especially on stocks that are coming out of a prolonged stage 4. But it’s a personal preference and not a requirement of the method. So if you are happy as you are, then stick with a standard scale.

[Red Barron]

On a weekly chart, after going up for several weeks, a stock reaches a peak. The next week's high reaches that same peak level. The following week, the stock pulls back. Could you draw a line of resistance connecting the two consecutive weeks that had the same high?

This scenario is illustrated, though not exactly, on the weekly chart for DJI if you look at the weeks of Jan 22 and Jan 29. I use ProRealTime for charting. I identify lines of resistance and support by focusing on the highs and lows of candles. Isatrader prefers to focus on the closing price for some reason.

[badcharts]

Hi red barron,

Can you attach a jpg with how you drew the line?

Regards,
Patrick[/b]

On a weekly chart, after going up for several weeks, a stock reaches a peak. The next week's high reaches that same peak level. The following week, the stock pulls back. Could you draw a line of resistance connecting the two consecutive weeks that had the same high?

This scenario is illustrated, though not exactly, on the weekly chart for DJI if you look at the weeks of Jan 22 and Jan 29. I use ProRealTime for charting. I identify lines of resistance and support by focusing on the highs and lows of candles. Isatrader prefers to focus on the closing price for some reason.

[b]