[collotennis]

cheers,FYI. I got some good replies when I posted the same question on Reddit. I just started reading trades about to happen. Are you familiar with that book?

Reply: "Wyckoff Analytics on YouTube. Trades About To Happen a book by David H Weis. Look up Henry O Pruden's work, he was an excellent teacher of the method. Best wishes, this will change your trading journey"

Another reply - "Volume Price Analysis , book by Anna Couling​i think its a good start, simple and easy to understand"

[yellowcup]

-So basically in the chart of  Starbucks, An early stage 3B occur then followed by a stage 2A breakout? or this is still in the Stage 2B
area.

Yes, the Starbucks entered Stage 3 but failed to enter Stage 4. Instead transitioned into another Stage 2 and went a little bit higher.

In case of the chart you posted - the stock also ended its Stage 2 and entered Stage 3 (30MA is flat and the price is oscillating around it). Also there was another Stage 3 earlier after the Stage 2 breakout.

Lebo44

Now, it is clear to me that, it is not necessary that when a stock enter a Stage 3a/3b, we are expecting for a Stage 4.

About the chart I posted. Stage 4 now is concluded.

Thanks.

[Lebo44]

Lebo44

Now, it is clear to me that, it is not necessary that when a stock enter a Stage 3a/3b, we are expecting for a Stage 4.

About the chart I posted. Stage 4 now is concluded.

Thanks.

Glad that I could help.

I'm just re-reading Stan's book over the weekend. I found the below in the Chapter 2:

"Once a Stage 3 top starts to form, traders should get the heck out with their profits! Investors, however, have more leeway. Once this stage is reached, I suggest that investors take profits on only half of their positions. There is always the chance that the stock will break out on the upside again, beginning yet another Stage 2 upleg."

[yellowcup]

Good Day to all,

I'm still in the process of correctly identifying stages on a price action.
Please feel free to comment on my annotations on the attached daily and Weekly chart.

On the Image 1 Weekly chart, the stocks directly transition from stage 4 to stage 2 advance.
Is my annotations correct? 
On the Image 2 daily chart, the stocks now is on stage 4.

Thank you,

[Lebo44]

Does anybody have any source or clue how Stan traded pullbacks? The book goes into details of breakouts, however, it mentions briefly pullbacks here and there. Stan mentions pullbacks in the interviews as well.

[collotennis]

Hi,

This site has soo much amazing info lol, many threads. Bit of a minefield. I have been reading through quite a lot doing my best to see which threads to look at first, how best to apply ect. I'm not sure if this question has been asked but -

Can you tell me the most efficient way to use this site, a dummy-proof guide so to speak the keys to look at?

Can be a daily routine, weekly routine, just a clear road map on the best way to use this site. I have read many questions on the beginner's thread.  But maybe you could put the top 10 keys to getting the most out of this site, a quick clear summary of the best ways to use the different threads. 

What you think is most important steps, cutting to the chase. Anyway to summarize of course will always help anyone who is new here espically.

You have done an amazing job with the whole site

[fabi470]

Hi David,

hope you are doing fine.

I am currently reading a book which consists from interviews wit top-traders such as Minervini, Zanger and Co..

There was one question, in which the 4 traders kind of disagreed: how to find stocks in combination with the right sector/ industry group.
There are 2 ways: - you could start to screen for stocks in an uptrend, that build a nice base, have at least XX avg. volume and so on - but they are all from different sectors and industries. And in a second step (i dont know, if they really care about that step, or if you can miss out on that one) they look, if the sector and / or industry is in a favourable position (i would call this approach bottom-up)

- the other possible way would be a top-down-approach: i will look for the strongest sector and / or group and only look there to find stocks with a good setup.

So, my question is, which approach do you prefer? Looking at the stocks first and then move on to sector /industry (=bottom-up)? Or first looking at sector / industry and only buying stocks from the "hottest" sector and / or industry? If you have a complet different approach, let me know that as well

Second question: is it the combination of a strong performing industry group in a strong sector? Or is the sector / the industry group more important to you?

Third question: i think i somewhere heard or read, that you should only buy stocks in sectors, that have currently a better RS than the S&P500 (e.g. Technology has 90RS and Financial 30RS  and the S&P500 a RS80, i would only buy technology stocks). Do you agree with that concept?

I would be very happy to hear from you!

Greetings from Germany!

[isatrader]

Hi David,

hope you are doing fine.

I am currently reading a book which consists from interviews wit top-traders such as Minervini, Zanger and Co..

There was one question, in which the 4 traders kind of disagreed: how to find stocks in combination with the right sector/ industry group.
There are 2 ways: - you could start to screen for stocks in an uptrend, that build a nice base, have at least XX avg. volume and so on - but they are all from different sectors and industries. And in a second step (i dont know, if they really care about that step, or if you can miss out on that one) they look, if the sector and / or industry is in a favourable position (i would call this approach bottom-up)

- the other possible way would be a top-down-approach: i will look for the strongest sector and / or group and only look there to find stocks with a good setup.

So, my question is, which approach do you prefer? Looking at the stocks first and then move on to sector /industry (=bottom-up)? Or first looking at sector / industry and only buying stocks from the "hottest" sector and / or industry? If you have a complet different approach, let me know that as well

Second question: is it the combination of a strong performing industry group in a strong sector? Or is the sector / the industry group more important to you?

Third question: i think i somewhere heard or read, that you should only buy stocks in sectors, that have currently a better RS than the S&P500 (e.g. Technology has 90RS and Financial 30RS  and the S&P500 a RS80, i would only buy technology stocks). Do you agree with that concept?

I would be very happy to hear from you!

Greetings from Germany!

Greetings fabi470, sorry for the slow reply.

I use the a variation of the top down approach in that I use a bottom up approach first to find stocks. i.e. the daily watchlist scans that I do, and then filter out based on the top down approach as I want to focus on those groups. So I will consider stocks that are in out of favour groups, but only if they are showing the A+ characteristics or if the group RS is rising strongly up the RS tables, but not yet favourable overall.

I do agree with the concept to only buy stocks in sectors, that have currently a better RS than the S&P 500, and is the a cornerstone of the Stage Analysis Forest to the Trees approach.

I hope that helps.