(2020-04-23, 05:35 PM)Haugaard Wrote:

(2020-04-23, 05:19 PM)Joe725 Wrote:

(2020-04-23, 05:13 PM)Haugaard Wrote:

(2020-04-23, 04:37 PM)Mashed Wrote: Hello!
I have another question

Today i reread Chapter 8, about indicators. I never have used any of that indicators, still in force?
Some of them are weird, like General Motors xD

What are you using? Do you have any recommendations?

Thanks!

Hi Mashed,

For your information, Isatrader is publishing a market breadth overview once a week on his youtube channel. Link right here.

I have found some of them to be a bit outdated, but then again, I'm sure that if you know the limitations of them, they still add value to the context. With that said, these are the ones i found to be the most reliable and straight forward for beginners.

- Look at the major indexes around the world. Stans studies has shown, that the most profitable market moves occur, when the overwhelming majority of world markets are in agreement. Are they all doing the same thing?

- This ones quite self-explanatory. Look at the 30w MA on the different indexes. Keeping track of this valuable gauge, will help you get out when bear markets occur and get in before the next big bull market starts.

- Study the NYSE ADL. Studies has shown, that the ADL is likely to reach its peak before the SP500. Look out for top formations in both the SP500 and the ADL. When the market is in stage 4, it is likely the SP500 will find its ultimate low before refusing to go lower, while the ADL continues to move lower. Look out for such a positive divergence.

- While you are looking at the advance decline figures that make up the ADL, you should take a look at the Momentum Index, which is just a 200d MA of the AD figures. Look out for crossings of the zero line. How long has the MI been in positive and negative territory, will eventually have an impact on how meaningful the signal is. Just as the ADL, the MI is likely to reach it's peak before the SP500. Take a look at one of the newest examples on my twitter page.

- Finally, keep your finger on the pulse. What are you friends telling you. Are they all stupidly bullish? Maybe it's time to look out for bearish signals. Are they all telling you to stay the fuck away from the market? Maybe it's time to look a some bullish signals. What are the newspapers writing? Are the frontpages bulls or bears?

The above mentioned are the ones i look out for the most. But then again, if you don't have the time or the energy to look at this yourself, you might just be better of spending 20 minutes every week or so, listening to Isatrader talking about these gauges, and some others, in detail on his Youtube page.

All the best,
@marcushaugaard

Marcus, i'm just wondering what your viewpoint on the news is. Engrained in my mind is Stan telling you to avoid using news outlets, business reports, TV etc... has this changed do you think over time. Or is it still the same story today to avoid any news outlets. Personally I do avoid them based on Stan's comments.

Hi,

If think there is a general misconception when it comes to the news and media. On one hand, you should not let the news mess with your approach. The reason Stage Analysis works, is because it lets you have an objective entry and sell point. That invaluable when it comes to trading. Trust your system. On the other hand, if you learn to use news as a gauge of fear and greed, it can be a handy tool to have in your arsenal.

Let me give you a little example. 3 weeks ago, i was considering whether or not i would short the ongoing pullback. I wasn't quite sure, because it seemed like everyone was way to bearish for another leg down. I then created a questionnaire on a danish investment Facebook group. As you can see, there was way too much pessimism for another leg down. I decided against shorting because of this.

(I know this is in danish, and just to clarify, i was asking whether or not they thought the bottom was in. The overwhelming majority, about 90%, said they didn't think so. Only 10% said the bottom was in.)



Use the media as a gauge, but for gods sake, never let it interfere with your approach.

All the best,
@marcushaugaard

(2020-04-23, 05:40 PM)Joe725 Wrote:

(2020-04-23, 05:35 PM)Haugaard Wrote:

(2020-04-23, 05:19 PM)Joe725 Wrote:

(2020-04-23, 05:13 PM)Haugaard Wrote:

(2020-04-23, 04:37 PM)Mashed Wrote: Hello!
I have another question

Today i reread Chapter 8, about indicators. I never have used any of that indicators, still in force?
Some of them are weird, like General Motors xD

What are you using? Do you have any recommendations?

Thanks!

Hi Mashed,

For your information, Isatrader is publishing a market breadth overview once a week on his youtube channel. Link right here.

I have found some of them to be a bit outdated, but then again, I'm sure that if you know the limitations of them, they still add value to the context. With that said, these are the ones i found to be the most reliable and straight forward for beginners.

- Look at the major indexes around the world. Stans studies has shown, that the most profitable market moves occur, when the overwhelming majority of world markets are in agreement. Are they all doing the same thing?

- This ones quite self-explanatory. Look at the 30w MA on the different indexes. Keeping track of this valuable gauge, will help you get out when bear markets occur and get in before the next big bull market starts.

- Study the NYSE ADL. Studies has shown, that the ADL is likely to reach its peak before the SP500. Look out for top formations in both the SP500 and the ADL. When the market is in stage 4, it is likely the SP500 will find its ultimate low before refusing to go lower, while the ADL continues to move lower. Look out for such a positive divergence.

- While you are looking at the advance decline figures that make up the ADL, you should take a look at the Momentum Index, which is just a 200d MA of the AD figures. Look out for crossings of the zero line. How long has the MI been in positive and negative territory, will eventually have an impact on how meaningful the signal is. Just as the ADL, the MI is likely to reach it's peak before the SP500. Take a look at one of the newest examples on my twitter page.

- Finally, keep your finger on the pulse. What are you friends telling you. Are they all stupidly bullish? Maybe it's time to look out for bearish signals. Are they all telling you to stay the fuck away from the market? Maybe it's time to look a some bullish signals. What are the newspapers writing? Are the frontpages bulls or bears?

The above mentioned are the ones i look out for the most. But then again, if you don't have the time or the energy to look at this yourself, you might just be better of spending 20 minutes every week or so, listening to Isatrader talking about these gauges, and some others, in detail on his Youtube page.

All the best,
@marcushaugaard

Marcus, i'm just wondering what your viewpoint on the news is. Engrained in my mind is Stan telling you to avoid using news outlets, business reports, TV etc... has this changed do you think over time. Or is it still the same story today to avoid any news outlets. Personally I do avoid them based on Stan's comments.

Hi,

If think there is a general misconception when it comes to the news and media. On one hand, you should not let the news mess with your approach. The reason Stage Analysis works, is because it lets you have an objective entry and sell point. That invaluable when it comes to trading. Trust your system. On the other hand, if you learn to use news as a gauge of fear and greed, it can be a handy tool to have in your arsenal.

Let me give you a little example. 3 weeks ago, i was considering whether or not i would short the ongoing pullback. I wasn't quite sure, because it seemed like everyone was way to bearish for another leg down. I then created a questionnaire on a danish investment Facebook group. As you can see, there was way too much pessimism for another leg down. I decided against shorting because of this.

(I know this is in danish, and just to clarify, i was asking whether or not they thought the bottom was in. The overwhelming majority, about 90%, said they didn't think so. Only 10% said the bottom was in.)



Use the media as a gauge, but for gods sake, never let it interfere with your approach.

All the best,
@marcushaugaard

Thanks Marcus, that's very insightful. I think I will try and use like minded people to get my news from, not someone who may have a large financial gain to profit from. That is why I think this forum is incredible, it seems to be like minded people wanting to help each other. I have been following you on twitter for a few days and liking what you're putting up too! Thank you for you r continued answers to questions, it is much appreciated!

(2020-04-23, 05:55 PM)Joe725 Wrote: Haha! I appreciate the help from anyone, I try not to follow people's stock advice too much. I'm currently reading the Reminiscences of a stock operator and it's opening my eyes up to listening to people too much!

(2020-04-23, 05:13 PM)Haugaard Wrote:

(2020-04-23, 04:37 PM)Mashed Wrote: Hello!
I have another question

Today i reread Chapter 8, about indicators. I never have used any of that indicators, still in force?
Some of them are weird, like General Motors xD

What are you using? Do you have any recommendations?

Thanks!

Hi Mashed,

For your information, Isatrader is publishing a market breadth overview once a week on his youtube channel. Link right here.

I have found some of them to be a bit outdated, but then again, I'm sure that if you know the limitations of them, they still add value to the context. With that said, these are the ones i found to be the most reliable and straight forward for beginners.

- Look at the major indexes around the world. Stans studies has shown, that the most profitable market moves occur, when the overwhelming majority of world markets are in agreement. Are they all doing the same thing?

- This ones quite self-explanatory. Look at the 30w MA on the different indexes. Keeping track of this valuable gauge, will help you get out when bear markets occur and get in before the next big bull market starts.

- Study the NYSE ADL. Studies has shown, that the ADL is likely to reach its peak before the SP500. Look out for top formations in both the SP500 and the ADL. When the market is in stage 4, it is likely the SP500 will find its ultimate low before refusing to go lower, while the ADL continues to move lower. Look out for such a positive divergence.

- While you are looking at the advance decline figures that make up the ADL, you should take a look at the Momentum Index, which is just a 200d MA of the AD figures. Look out for crossings of the zero line. How long has the MI been in positive and negative territory, will eventually have an impact on how meaningful the signal is. Just as the ADL, the MI is likely to reach it's peak before the SP500. Take a look at one of the newest examples on my twitter page.

- Finally, keep your finger on the pulse. What are you friends telling you. Are they all stupidly bullish? Maybe it's time to look out for bearish signals. Are they all telling you to stay the fuck away from the market? Maybe it's time to look a some bullish signals. What are the newspapers writing? Are the frontpages bulls or bears?

The above mentioned are the ones i look out for the most. But then again, if you don't have the time or the energy to look at this yourself, you might just be better of spending 20 minutes every week or so, listening to Isatrader talking about these gauges, and some others, in detail on his Youtube page.

All the best,
@marcushaugaard

(2020-04-23, 06:43 PM)Joe725 Wrote: Would somebody be able to just have a quick glance to see if I have analysed this chart correctly.
Firstly, the stock is ever so slightly underperforming on its 30MA, the 7MA (As i couldn't get the 10) is slightly declining. 
Volume is increasing in the last month massively, however it seems to be slightly more sellers than buyers. 
It is just above the MRS Trend.
In terms of resistance, i'm a bit unsure of where to judge it from, the stock seems to have been in Stage 2, broke down and hit a slump in Jan '19 and started to consolidate from there. The previous resistance I think is around 3892.
The support seems to be around 2350- ish. I'm half tempted to take a small position if it can get near it's 10MA and then take a stronger position if I see higher volume in the buyers side? I realise i've cut off the header, its British American Tobacco Company trading on LSE.

(2020-04-23, 08:17 PM)Haugaard Wrote: The key to successfully trade using Stage Analysis is to buy on breakouts and only buy A+ setups. Patience is key. You'll be able to find a checklist on this forum as well. 

To answer your question. $BATS is trading below it's 150d MA, which is a no-go when it comes to Stage Analysis. 

All the best,
@marcushaugaard