(This post was last modified: 2016-03-06, 06:26 PM by pcabc.)
RE: UK Stocks - Watchlist and Discussion
Big volume spike on SOLG.L:
Need to point out that if you put a trader stop loss at 2.25 and you buy at Friday's close price then the difference between the two is over 30%. This has everything going for it execpt that the stop loss is a rather long way away IMHO.
(2016-03-09, 10:33 PM)malaguti Wrote: one i've been looking at for the short list
It's been over a year since HWDN.L last came up on here http://stageanalysis.net/forum/showthrea...59#pid6359. I highlighted it last January at 392, when it was pulling back to touch it's 10 week MA following the continuation breakout. Looks like it had a solid Stage 2 run for 6 months following that and managed another 30%+.
A good example for people using the trader method, and getting in near the highs, instead of the lows, like so many new traders try to.
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.
(2016-03-09, 10:51 PM)isatrader Wrote: A good example for people using the trader method, and getting in near the highs, instead of the lows, like so many new traders try to.
From the book it seem clear that you should get in at the breakdown point, not at the highs. I can see the advantage of getting in at the highs mind you. In the book does it state you should get in at he highs or is that something that has come out in further discussions?
(2016-03-09, 11:42 PM)pcabc Wrote: From the book it seem clear that you should get in at the breakdown point, not at the highs. I can see the advantage of getting in at the highs mind you. In the book does it state you should get in at he highs or is that something that has come out in further discussions?
I think you've misunderstood. The chart I showed was from a year ago, and I was talking about it being a great example of how a Stage 2 continuation can run. Not a Stage 4 breakdown point, which I think you're referring to.
The trader method is all about getting in at the Stage 2 continuation breakout point (at new highs) in a stock that has consolidated following a strong Stage 2 advance, and is above a strongly rising 30 week MA, and has has a consolidation period that has shown good price and volume action. i.e. the best example of the trader method setup imo, is Mark Minervini’s Volatility Contraction Pattern (VCP) where the price action consolidates with less volatility as it develops and volume dries up, before expanding again on the breakout attempt.
So people following the trader method should be looking at the new highs list, and not patterns that are recovering in Stage 1 after Stage 4 declines. i.e the chart on the right below, as taken from the book, and not the investor entry point as shown on the left.
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.
(2016-03-09, 11:51 PM)isatrader Wrote: I think you've misunderstood. The chart I showed was from a year ago, and I was talking about it being a great example of how a Stage 2 continuation can run. Not a Stage 4 breakdown point, which I think you're referring to.
Thanks. I did misunderstand, I thought the discussion was on breakdowns into stage 4. We need a bit of a run before we get to the continuation stage right now so some patience is needed.
