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RE: Stage Analysis Beginners Questions - isatrader - 2020-12-30
(2020-12-30, 06:36 PM)miche Wrote: On IBD they noted an alternative buy point would be on pullback to the 50DMA. Would that be on the 2hr chart? That's what I did - added to FCEL @11.07 which was at the 50DMA on the 2hr chart. However, it didn't have above volume when I purchased it about an hour after open, but hour later volume came in and the stock is up 11%. I was hesitant since it didn't have the volume at the time - but I broke my rules hoping it would work out - got lucky I guess. I was also watching support at around 10.60 - 10.75. Do you ever purchase at support then wait for the bounce? Thanks I'm learning how to read all the different time frames.
The 50DMA is the 50 Day Moving Average. So won't find it on the 2 hour chart unless you use an approximation to adjust for the time difference. But well done on the trade.
Pullback entries are the opposite of breakout entries, as you want to see the volume dry up on the pullback at key support levels to very low levels, and that is the signal to enter, as it shows that there is a lack of selling pressure in the stock, and so the path of least resistance is then higher. It is an area overlooked by most using Stage Analysis as can be difficult to master, which is why I've developed the 2 hour chart techniques that use the Stage Analysis breakout methods that people are more comfortable with but on the lower timeframe. So that they are actually entering on a lower risk pullback instead in an already strong stock in Stage 2.
RE: Stage Analysis Beginners Questions - miche - 2020-12-31
(2020-12-30, 11:33 PM) pid=\17150' Wrote:LOL I realized that later 50 DAYMA. I sold for a 25% gain may have been a day early since it broke out another 25% the next day -crazy and then finally gaped down. I read if a stock can move 20% in three weeks it's a strong one. So thought to give it another shot
I get so your basically buying the pullback on a stage 2 stock but on the 2hr it looks like a breakout. Cool
Have a Happy New Year! Cheers!
isatrader
(2020-12-30, 06:36 PM)miche Wrote: On IBD they noted an alternative buy point would be on pullback to the 50DMA. Would that be on the 2hr chart? That's what I did - added to FCEL @11.07 which was at the 50DMA on the 2hr chart. However, it didn't have above volume when I purchased it about an hour after open, but hour later volume came in and the stock is up 11%. I was hesitant since it didn't have the volume at the time - but I broke my rules hoping it would work out - got lucky I guess. I was also watching support at around 10.60 - 10.75. Do you ever purchase at support then wait for the bounce? Thanks I'm learning how to read all the different time frames.
The 50DMA is the 50 Day Moving Average. So won't find it on the 2 hour chart unless you use an approximation to adjust for the time difference. But well done on the trade.
Pullback entries are the opposite of breakout entries, as you want to see the volume dry up on the pullback at key support levels to very low levels, and that is the signal to enter, as it shows that there is a lack of selling pressure in the stock, and so the path of least resistance is then higher. It is an area overlooked by most using Stage Analysis as can be difficult to master, which is why I've developed the 2 hour chart techniques that use the Stage Analysis breakout methods that people are more comfortable with but on the lower timeframe. So that they are actually entering on a lower risk pullback instead in an already strong stock in Stage 2.
RE: Stage Analysis Beginners Questions - Tryst - 2021-01-16
Hi all, is it too late to say happy new year! (first post of 2021)
A question regarding the 50 day SMA and the 10 week SMA. On the charts for the daily and weekly they don't line up. The 10 week SMA always seems about 5-7% higher. What could be the reason for this, and if they need to remain unaligned, generally which one (daily or weekly) to traders trade around?
Thanks
RE: Stage Analysis Beginners Questions - isatrader - 2021-01-17
(2021-01-16, 11:39 PM)Tryst Wrote: Hi all, is it too late to say happy new year! (first post of 2021)
A question regarding the 50 day SMA and the 10 week SMA. On the charts for the daily and weekly they don't line up. The 10 week SMA always seems about 5-7% higher. What could be the reason for this, and if they need to remain unaligned, generally which one (daily or weekly) to traders trade around?
Thanks
They are never going to be the same as averaging from different data points. i.e daily versus weekly, but the 50 day MA is the closest approximation to the 10 week MA. But in terms of short term trading the 50 day MA is essential, as it is heavily used by the vast majority of traders and numerous trading methods for buying points and sell rules.
Generally if the stock is below a declining 50 day MA, then in the short term it's an avoid until it can recover back above it.
RE: Stage Analysis Beginners Questions - Tryst - 2021-01-18
Thanks for the prior reply, IsaTrader.
I have another question on Relative Strength. Does each service that provide this have a different version of it? For example, there is the SCTR ranking on StockCharts.com, RS value on MarketSmith and also RSI whcih I guess is something completely different.
Is the RS score on MarketSmith a custom score only on that tool or is this a more widely used rank/score that can be used on other platforms? I can't find it on ProRealTime, they only have RSI.
RE: Stage Analysis Beginners Questions - isatrader - 2021-01-19
(2021-01-18, 12:43 AM)Tryst Wrote: Thanks for the prior reply, IsaTrader.
I have another question on Relative Strength. Does each service that provide this have a different version of it? For example, there is the SCTR ranking on StockCharts.com, RS value on MarketSmith and also RSI whcih I guess is something completely different.
Is the RS score on MarketSmith a custom score only on that tool or is this a more widely used rank/score that can be used on other platforms? I can't find it on ProRealTime, they only have RSI.
Yep is different on each service. MarketSmith/IBD RS rating is the stocks percentage compared to all other stocks in the US market that they track in their universe of stocks. So a 99 score means it's done better than 99% of the stocks in the market over the last year. The RS line they use is the same as the Mansfield RS line that we use, as is just a comparison versus the S&P 500. But they don't add a moving average to theirs. Whereas the SCTR score is different as is a combination of indicators, with the longest having a 200 day setting that comes up with the score. But the scores are generally very similar.
RSI is a completely different thing as it is a momentum oscillator that measures the speed and change of price movements on a single stock and doesn't compare against anything else. So is fairly useless for comparative studies and hence not needed.
RE: Stage Analysis Beginners Questions - Tryst - 2021-01-21
thanks for taking the time to explain that, Isatrader
RE: Stage Analysis Beginners Questions - miche - 2021-02-02
I keep missing the breakout since I'm not always at the computer. Today I checked it at the open and everything looked normal and didn't get a chance to look at the charts until after the close and saw APHA was already up 17%. In this case would it be better to set a limit order at 13.18? But then how would you know the volume is coming in? Reading about multiplying volume by 4 if it's 10:30EST since 25% of session has elapsed. I guess I can aim for a fishhook for second chance. cheers