Just to mention I really am fond of you screener results.
Always something good in there... either in a breakout, or just about too!Â
Actually, even the ones in a breakout are great, I use them to set alerts on potentiel support close to the breakout line, and get back to the chart if triggered (the classic 1-3 months pullback after the initial breakout).
If on contracting volume, then I love entry right there!Â
Nothing gonna replace the human eye.. well if it can be replaced, that would remove alot of the fun!
Keep up the great work!
Regards,
Patrick
Isa,
You're forcing me to take a nice warm coffe and read this correctly!
I also look at the higher trend to confimr the "wind" direction and look at smaller timeframes to confirm (for non-marabuzo candles) if the pullback was (wick) done on contracting volume (healthy). You are right, you become more more procficient in avoiding whipsaws when you levergae different timeframes.
I somethimes feel like I'm in the movei "Inception" when manipulating different timeframes. kinda cool actually when I think of it.
Always great getting your feeback!
Regards,
Patrick
(2018-05-06, 10:52 PM)isatrader Wrote:
(2018-05-06, 09:26 PM)badcharts Wrote: Will check fiddle around with your ideas and see what type of results I come up with.
Another idea might simply be to create a chartlist of all the early Stage 2 breakouts already in progress. i.e making their first or second significant advance higher following the initial Stage 2A breakout point on heavy volume i.e during wave 1 or wave 3 if you like Elliott wave theory. And then just simply look through the chartlist at the end of each week for the first multi week pullback.
At that point if you drop down the timeframes to the 2 hour chart, you can practice Stage Analysis on an intraday level to perfectly time the entry point, as the pullback on the 2 hour chart will present as a Stage 4 decline if you setup the 2 hour chart with the same settings as the weekly chart.
So you simply wait for the stocks Stage 1 base to form on the 2 hour chart, and monitor the volume of the decline compared to the 2 hour Stage 2 advance that just preceeded it. Then as the pullback slows you should see a Stage 1 base forming on the 2 hour chart, which after the initial bounce will give you a level to watch for a Stage 2A breakout as it would on the weekly, you can even use the 2 hour ichimoku cloud to see resistance. Then as with a weekly Stage 2A breakout, all the same rules apply. The breakout above that Stage 1 level should be on at least 2x the volume on the 2 hour chart, and it should be relatively outperforming the S&P 500, or it's a pass.
This multi timeframe method on pullbacks is not part of Stans method, but something I've used to good effect many times, and something that I'm continuing to refine as my own improvement to the Stage Analysis method. As well as a multi timeframe approach on the breakouts, where I use the monthly, weekly, daily and 2 hours charts.
(2018-05-26, 11:40 PM)isatrader Wrote: A few for the watchlist from Fridays scans - AHGP, CPSI, DEST, IIPR, ETSY
badcharts,
When you make an entry on a favorable pullback, do you buy right when the price drops down to near the breakout, as Weinstein seemingly advises in the book; or do you wait for the price to hit that level but then start recovering for a day or two with consequetive higher closes (as I "think" maybe isatrader approximately recommends, tho not exactly)
(2018-05-28, 01:10 AM)Red Barron Wrote: badcharts,
When you make an entry on a favorable pullback, do you buy right when the price drops down to near the breakout, as Weinstein seemingly advises in the book; or do you wait for the price to hit that level but then start recovering for a day or two with consequetive higher closes (as I "think" maybe isatrader approximately recommends, tho not exactly)
Hi Mr.Barron,
The section I found on this important concept for entry is soo small in Stan's book. Page 14-15. "...brings the price of the stock back close to the intial breakout point..."Â
On very light volume, a candle that touchs the breakout line or close to it would be enough to enter.
Additionally, if you want to increase you chances of this being a normal pullback (and not a reversal):
1- Wait for a candle such as a hammer or doji around the breakout out line
2- Wait for an additonal green candle following that "reversal" candle.Â
Remember, a high or low point (either to draw a trendline or trace out a pattern)Â is only valid if followed by an opposite color candle. Ex. Pullback in progress... red candle... red candle... red hammer candle... then a green candle <= enter on the close of this candle
