RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
(2020-05-16, 01:34 PM)mucked4u Wrote: Please forgive me but I need to ask because I cant find where to make a post asking a new question. Have looked everywhere but just extreme frustration
Am not sure what you mean. You've just asked a question?
If you mean how to create a new thread, then that's not possible, as this is my personal website and not an open forum. You can however ask any questions you like related to the method in the beginners questions thread
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.
RE: Stage Analysis Technical Attributes - SATA Score V2
(2020-05-12, 04:17 PM)isatrader Wrote: Stage Analysis Technical Attributes - SATA
Price above 10 Week Simple MA
Price above 30 Week Simple MA
10 Week Simple MA above 30 Week Simple MA
10 Week Simple MA Rising
30 Week Simple MA Rising
52 Week Mansfield Relative Strength above Zero Line
52 Week Mansfield Relative Strength Zero Line Rising
13 Week Force Index Above Zero Line
Weekly Elder Impulse on Green
Price Greater than the Weekly Ichimoku Cloud
I was thinking more about these scores, suppose we could actually use them to enter and exit..
anyway, i put these into amibroker except relative strength and volume as i wanted to do this against just the S&P
so out of the 10 above i'm left with 7 (13week Force index and relative strengths not included)
I've created a colour coded filter which you can see from the first image (ISAScoring). This is for the weeks of 2020 where we see the scoring going lower and lower..could this be a way of measuring the beginning and end of a trend I thought?
The "magic" number seems to be 2 (or below), that's where we really want to be out.
I've plotted the scores against the price chart as its own indicator
i wonder could we take this further to be used as a trend or at least a trend strength indicator.
we can see between 2009 and 2020 there a dozen times price got to below 2 yet obviously in hindsight we were still in an uptrend
and just 4 times in 11 years the score went to below 2 and subsequently recovered to 7
coming out of downturns we can reach 5 even, but never 7.
on the flip side we are sometimes in a 7 but technically still in a stage 3
let me know if you think its worth taking further..I personally think there could be value
example..could we use this to time entry, or when to scale out, when to exit. there is no ONE indicator, but could we come close to our own indicator that uses a combination as we have here to time the market.
attached is an xls of all weeks going back to 1962 of the scoring..
RE: Stage Analysis Technical Attributes - SATA Score V2
(2020-05-17, 04:11 PM)malaguti Wrote: I was thinking more about these scores, suppose we could actually use them to enter and exit..
anyway, i put these into amibroker except relative strength and volume as i wanted to do this against just the S&P
so out of the 10 above i'm left with 7 (13week Force index and relative strengths not included)
I've created a colour coded filter which you can see from the first image (ISAScoring). This is for the weeks of 2020 where we see the scoring going lower and lower..could this be a way of measuring the beginning and end of a trend I thought?
The "magic" number seems to be 2 (or below), that's where we really want to be out.
I've plotted the scores against the price chart as its own indicator
i wonder could we take this further to be used as a trend or at least a trend strength indicator.
we can see between 2009 and 2020 there a dozen times price got to below 2 yet obviously in hindsight we were still in an uptrend
and just 4 times in 11 years the score went to below 2 and subsequently recovered to 7
coming out of downturns we can reach 5 even, but never 7.
on the flip side we are sometimes in a 7 but technically still in a stage 3
let me know if you think its worth taking further..I personally think there could be value
example..could we use this to time entry, or when to scale out, when to exit. there is no ONE indicator, but could we come close to our own indicator that uses a combination as we have here to time the market.
attached is an xls of all weeks going back to 1962 of the scoring..
I'm not really sure it works without the volume and relative strength component, as it's like driving a car without an engine and only two wheels. As the whole point of is that we only want to be in stocks that meet the all of the four key requirements of the method, Price, Volume, Relative Strength and Resistance - without exception.
My thinking around how it could be useful is on an individual stock basis, as you could have a screener that would identify when a stock became greater than an 8. As that would give you much fewer, but higher quality stocks to look at visually to do a more thorough analysis, and also show you which sub sectors had multiple stocks with strong ratings, and highlight when multiple stocks in a sector moved up the scale into the strong range.
The rating of individual stocks could also be used as breadth indicator like you've done for the index, as you would have a scale of 0-10. So would work in the same way as the Bullish Percent Index using the P&F plot of it to give signals.
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.
RE: Stage Analysis Technical Attributes - SATA Score V2
(2020-05-17, 04:28 PM)isatrader Wrote: My thinking around how it could be useful is on an individual stock basis, as you could have a screener that would identify when a stock became greater than an 8. As that would give you much fewer, but higher quality stocks to look at visually to do a more thorough analysis, and also show you which sub sectors had multiple stocks with strong ratings, and highlight when multiple stocks in a sector moved up the scale into the strong range.
The rating of individual stocks could also be used as breadth indicator like you've done for the index, as you would have a scale of 0-10. So would work in the same way as the Bullish Percent Index using the P&F plot of it to give signals.
General repose to these postings, not particularly ISA...
I can see it working for breadth, but if you want to catching individual stocks breaking into stage 2 then you need to spot stocks exceeding the boundary of the previous day's channel, i.e. a Donchian channel. If you look at that and above average volume you will capture the breakout points. Just looking that various MA's means that if you sort for the most positive stocks you will end up sorting for the most overextended stocks or ones where it is too late for a good entry.
RE: Stage Analysis Technical Attributes - SATA Score V2
(2020-05-17, 05:53 PM)pcabc Wrote: I can see it working for breadth, but if you want to catching individual stocks breaking into stage 2 then you need to spot stocks exceeding the boundary of the previous day's channel, i.e. a Donchian channel. If you look at that and above average volume you will capture the breakout points. Just looking that various MA's means that if you sort for the most positive stocks you will end up sorting for the most overextended stocks or ones where it is too late for a good entry.
I agree that screening for stocks moving to from a score of less than 8, to a score of 8 or above wouldn't catch a lot of stocks at the Stage 2A breakout point, as some might breakout on a lower score, but it would give you virtually all of the strongest stocks to watch for when they formed their first or second bases within Stage 2. So I can see value in it, as they are my preferred entry points.
What I don't mean is just looking for strong stocks with a score of 8 or higher, as as you said you'd get all the extended stocks too. So the screen would look only for stocks transitioning from a lower score to higher score. Which would be quite a small list to then check manually for stocks with potential.
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.
RE: Stage Analysis Technical Attributes - SATA Score V2
(2020-05-17, 06:05 PM)isatrader Wrote: What I don't mean is just looking for strong stocks with a score of 8 or higher, as as you said you'd get all the extended stocks too. So the screen would look only for stocks transitioning from a lower score to higher score. Which would be quite a small list to then check manually for stocks with potential.
Transitioning, excellent point. If any one recalls a long while back, after I started to get the idea of how breadth worked I implemented a breath scoring system and would only buy when it was getting top scores - and all I did was get into positions right at the peak just before they pulled back. You suggested that strengthening breath was the time to get in, not strongest breadth - and that made a big difference.