(2020-05-07, 01:25 PM)mucked4u Wrote: Ok I am very interested in getting back into trading and am currently paper trading to get the feel of the strategy. My question is on freestockcharts.com I try to load the RSI and it keeps demanding a sector as well to guage against. What is the best sector to use since I cant have the RSI with sector selection.
Glad to be back.
Hi, I'm not sure about freestockcharts but I used trading view and they have a Mansfield Relative Strength indicator here:
(2020-05-07, 01:25 PM)mucked4u Wrote: Ok I am very interested in getting back into trading and am currently paper trading to get the feel of the strategy. My question is on freestockcharts.com I try to load the RSI and it keeps demanding a sector as well to guage against. What is the best sector to use since I cant have the RSI with sector selection.
Glad to be back.
Hi, I'm not sure about freestockcharts but I used trading view and they have a Mansfield Relative Strength indicator here:
Thanks, forgive my ignorance but I don't see it in the list of indicators. Do I have to create it myself? I am finding all I need to learn the system but this indicator is a thorn in my side trying to find on a chart. I am not tech savvy enough tto create the indicator myself using code. I am certain this indicator is quite important for the strategies.
(2020-05-07, 01:25 PM)mucked4u Wrote: Ok I am very interested in getting back into trading and am currently paper trading to get the feel of the strategy. My question is on freestockcharts.com I try to load the RSI and it keeps demanding a sector as well to guage against. What is the best sector to use since I cant have the RSI with sector selection.
Glad to be back.
Hi, I'm not sure about freestockcharts but I used trading view and they have a Mansfield Relative Strength indicator here:
Thanks, forgive my ignorance but I don't see it in the list of indicators. Do I have to create it myself? I am finding all I need to learn the system but this indicator is a thorn in my side trying to find on a chart. I am not tech savvy enough tto create the indicator myself using code. I am certain this indicator is quite important for the strategies.
Just type in Mansfield and it will come up.
- Marcus Haugaard "The Tape Tells All" - Stan Weinstein
(This post was last modified: 2020-05-10, 12:43 PM by Joe725.)
RE: Stage Analysis Beginners Questions
I have a question, i've just see the weekly breakout watchlist that contains BYND. I am already long on BYND with a small amount invested when it was at $90. Is now the time to buy more on Monday? I'm looking at the chart the volume is really good, it's very close to breaking the short term overhead resistance?
Or is my buy-in solely dependant on if it can break above the $135.
(2020-05-10, 12:42 PM)Joe725 Wrote: I have a question, i've just see the weekly breakout watchlist that contains BYND. I am already long on BYND with a small amount invested when it was at $90. Is now the time to buy more on Monday? I'm looking at the chart the volume is really good, it's very close to breaking the short term overhead resistance?
Or is my buy-in solely dependant on if it can break above the $135.
You would only be adding more if it got past 135, its still in stage 1 with resistance right overhead at 135 but considering the weekly cloud at 142 looks pretty strong. Weinstein talks about a zone, rather than a hard and fast one level
so your resistance "zone" is 135 to 142. get past 142 and that personally is where i'd be looking to add to a position
(2020-05-10, 12:42 PM)Joe725 Wrote: I have a question, i've just see the weekly breakout watchlist that contains BYND. I am already long on BYND with a small amount invested when it was at $90. Is now the time to buy more on Monday? I'm looking at the chart the volume is really good, it's very close to breaking the short term overhead resistance?
Or is my buy-in solely dependant on if it can break above the $135.
You would only be adding more if it got past 135, its still in stage 1 with resistance right overhead at 135 but considering the weekly cloud at 142 looks pretty strong. Weinstein talks about a zone, rather than a hard and fast one level
so your resistance "zone" is 135 to 142. get past 142 and that personally is where i'd be looking to add to a position
(2020-04-26, 07:08 PM)marry123 Wrote: Hi,
I was wondering if this would be a proper breakout candidate meeting the stage analysis criteria? I understand one should not buy it even if it is a good breakout candidate because the overall market (TSX) is still in stage 4, so this is a purely educational question.
CTC.TO (a Canadian retail chain) has broken its trendline on above average volume 2 weeks ago and price is above the SPX price line. However, I am not clear as to whether the 30 MA is still considered to be in a downtrend even though last week it seems to have started to curl up a bit. If this is not a breakout candidate what would I need to see to go long (if the TSX had not been in stage 4)?
Thanks for your thoughts.
Hi marry123,
The 30 week MA has turned up this week with the continued move higher, so it is technically in early Stage 2A. However, it would not be considered an A+ candidate, firstly because it's still below significant near term resistance. See the section in Chapter 4 in the book (p96) The Less Resistance the Better, as it's currently pushing up against the consolidation range that made up a large portion of 2019. And one of the key requirements of successfully trading with the method is to avoid stocks that are still under near term resistance.
I've added the ichimoku cloud to the weekly chart, as this gives a rough visual guide to where the resistance is and considers the time based nature of resistance too, as it projects the cloud six months into the future. So I find this useful if I'm ever unsure about resistance. As ideally you want to trade from a proper base once it's clear of resistance.
Also, note the moving averages on the daily chart. The 50 day MA is still below the 150 day MA and the 200 day MA (which is still declining). You want to see the reverse of this when considering resistance, as the 50 day should be above the 150 day MA and the 150 day MA should be above the 200 day MA and they should all be moving higher.
One of the biggest mistakes that new users of the method make is to try to get into a stock that's had a big Stage 4 decline of a year or more that is then just starting to turn up after a very small base. I did this many times myself when I was beginning to learn the method. But this is literally the opposite of what the method is, and Stan talks about it on page 1 of the book. As our aim is not to buy low and sell high. It is to buy high and sell higher.
So avoid stocks that have had big declines and instead focus on stocks either making big bases of a year or more, or stocks that are already proving themselves in Stage 2 and breaking out of early bases. Mark minervini talks about the Stage 2 base count on page 80 of his first book. Focus on trading breakouts from base 1 and base 2 once a stock is in Stage 2, and you'll do much better, as at that point the stock has already proved it's in a Stage 2 uptrend, but it's still early enough to get in a make big gains before the rest of the crowd discovers it.
Thank you Isa for explaining things. It is a huge help to have someone like you break things down and point out what to watch for in terms of buying stocks breaking out in proper bases. I will keep learning and waiting for your posts as to when the indices have reached their proper buy points.
Hi Isa. Just following up on CTC.TO to note you were correct (I did not buy it) as it shot up looking as if it was breaking from the trendline but then collapsed back under the trendline (cloud stopped it) as it is still too early (note in stage 2) as you noted; 30 ma still in a downtrend and big sell volume came in on weekly. In 2017 it had a nice long base before breaking out.
What is frustrating is that many of the tech stocks, like SHOP, had no proper bases form after they collapsed into March (and they fell below their 30 MA on the weekly) but then just ripped higher, many of them up 100% from end of March. They were just V rallies so if one was following the stage analysis method I guess one would have missed out on all these tech stocks if forming a proper base before buying a breakout is a key prerequisite for entry long? When would one have known to go long SHOP after it crashed in March and why would one have bought it if stocks should form proper bases, as you noted, of a year or more?
(This post was last modified: 2020-05-10, 03:32 PM by marry123.)
RE: Stage Analysis Beginners Questions- CCO.TO
Hi Isa and others,
Can you please comment on CCO.TO (Uranium stock). Would it be a buy if it breaks above 17 given it would be above the cloud (as it is now) but there seems to be resistance at 18 going back to 2015 (how far back should one look in terms of overhead resistance)?
It had formed a base of around 6 months with 11-13 range so would proper entry have been a break over 13 (cloud was right above so guessing one would not have entered on a break of 13)? My guess is a break of 17 on volume would be the trigger buy now as it would break above a 3+ year overhead resistance.
