[isatrader]

Any idea why the sector has been put under "Unfavorable" category?

Yep, that ones a mystery. Has been in the top 10 RS groups for months, and no.1 currently.

   

[pcabc]

Any idea why the sector has been put under "Unfavorable" category?

Yep, that ones a mystery. Has been in the top 10 RS groups for months, and no.1 currently.

I think there could be reasons for it.  I've calculated a market breadth chart.  There are relatively few constituents in this pool of stocks.  key points for me are that aluminium itself is in a pullback [1], the Weinstein Momentum [1] is near zero, but it has not crossed the line but might easily rise [2].  However, on the longer term the Weinstein Momentum and the 1% A/D have both been in a long decline [5 & 6].  The % stocks above their MAs [11, 12 & 13] and the Silver and Gold Cross indicies [14 & 15] have been declining.

Of course, what would have been more objective is if I had undertaken the analysis without the knowledge of what has been said in this thread.


   

[JONA]

Isatrader - I'm really enjoying your website content, thank you for all of the incredible write-ups and videos - it’s definitely helped me elevate my game as a position trader. 

I noticed that you use ATR on your charts (I see that you use 21 and 52 both?), how much emphasis do you give to it when evaluating a stock? Do you couple it specifically with some of the other indicators when you do research to assess if it's a good buy/sell? I’m learning more about it and was curious on your method and approach, thank you.

[isatrader]

Isatrader - I'm really enjoying your website content, thank you for all of the incredible write-ups and videos - it’s definitely helped me elevate my game as a position trader. 

I noticed that you use ATR on your charts (I see that you use 21 and 52 both?), how much emphasis do you give to it when evaluating a stock? Do you couple it specifically with some of the other indicators when you do research to assess if it's a good buy/sell? I’m learning more about it and was curious on your method and approach, thank you. 

Thank you JONA, I'm really glad that's been helping you.

With regards to the ATR. I use it in a number of different ways. As a guide to a stock's normal volatility when deciding where to place a stop-loss, as I generally think for position trading that it needs to be up to 2x the ATR to give it enough room from its normal movements. As well as a way to see if a stock is too extended from an entry point as if it is already 2x or greater from the breakout for example, then I'd generally want to wait for a pullback, as I want to get in just above the 1x ATR level if breaking out etc. And you can also use it for grading trades, by determining how far the stock moved compared to its 52-week ATR or any other ATR setting that you want as long as it's consistent. So for example for swing trading you might give a 1x ATR move a C grade, a 2x ATR move a B grade, and 3x ATR move an A grade etc.

There are no hard and fast rules of how you should use the ATR. But it can be a very useful tool.

I hope that helps

[JONA]

Isatrader - I'm really enjoying your website content, thank you for all of the incredible write-ups and videos - it’s definitely helped me elevate my game as a position trader. 

I noticed that you use ATR on your charts (I see that you use 21 and 52 both?), how much emphasis do you give to it when evaluating a stock? Do you couple it specifically with some of the other indicators when you do research to assess if it's a good buy/sell? I’m learning more about it and was curious on your method and approach, thank you. 

Thank you JONA, I'm really glad that's been helping you.

With regards to the ATR. I use it in a number of different ways. As a guide to a stock's normal volatility when deciding where to place a stop-loss, as I generally think for position trading that it needs to be up to 2x the ATR to give it enough room from its normal movements. As well as a way to see if a stock is too extended from an entry point as if it is already 2x or greater from the breakout for example, then I'd generally want to wait for a pullback, as I want to get in just above the 1x ATR level if breaking out etc. And you can also use it for grading trades, by determining how far the stock moved compared to its 52-week ATR or any other ATR setting that you want as long as it's consistent. So for example for swing trading you might give a 1x ATR move a C grade, a 2x ATR move a B grade, and 3x ATR move an A grade etc.

There are no hard and fast rules of how you should use the ATR. But it can be a very useful tool.

I hope that helps

That makes sense, thank you!

[JONA]

Hello Isatrader,

I noticed that you use three levels of Keltner Channels on your charts, do you use that to inform how extended a stock is, buy or sell signals, or to complement any other specific part of the stage analysis approach? Apologies if you've already documented this somewhere, I was searching for an answer but wasn't able to find anything specific - thank you!

[isatrader]

Hello Isatrader,

I noticed that you use three levels of Keltner Channels on your charts, do you use that to inform how extended a stock is, buy or sell signals, or to complement any other specific part of the stage analysis approach? Apologies if you've already documented this somewhere, I was searching for an answer but wasn't able to find anything specific - thank you!

Hi Jona,

The 3ATR Keltner Bands are something I picked up from using the Alexander Elder's Spiketrade service many years ago when I first started trading before I came to Stan's work. But they have stuck with me over the years as are a great visual way to see short-term risk, as well as being a useful scanning tool and a visual guide to whether a stock is showing a change of behaviour.

You can use them to see how extended a stock is in either direction, as a quick move to the +3x ATR band tells you that the rubber band has get stretched to the upside and might need to consolidate or pullback. You'll find that most uptrends spend the majority of their time between the +1x ATR level and +3x ATR level, and opposite for downtrends, with occasional deeper pullbacks to the 21 day EMA, which is the middle band, or deeper to the 50 day SMA.

They can be useful for judging how extended a breakout is, as if the stock breaks out from a VCP pattern then it will often only just be closing above the +1x ATR level, and hence has room to run in the short term. But if it's breaking out from a more volatile pattern, then can be extended past the +3x ATR level on the first day, and hence increases the risk of failure, or squatting back into the range.

There's are lots of ways to use them, but for me it's mostly about assessing risk and getting a visual guide of how far a stock moves on a typical day, as this can then help inform your stop loss positioning.

Below is the setup I use for them in stockcharts

   

[mkoza]

Hello all,

First, let me say great forum. I've always been a strictly CANSLIM investor and trying to broaden my skill set to include Weinstein  & Wyckoff.

Something I'm trying to grasp is the "daily routine". Ive got it down in Marketsmith, but using this method I feel lost.

Is there a video/forum post that shows your daily routine? For Example: Run scans in sectors > Groups > create watchlist etc etc

Does that make sense?

Thank you in advance.