(2015-12-07, 11:49 PM)isatrader Wrote:

(2015-12-07, 04:46 AM)mongoose1969 Wrote: I've read through your thread and set up that indicator. I want to be sure I'm looking at the cloud the way I'm supposed to. Is the goal to make sure the cloud is not as "thick" above the price like it looks with BANX? As I look at something like RDCM, the cloud is actually under the price trend. I guess I need an assist with what I'm supposed to be looking at with that cloud.

A thick cloud above the current price is bad, as it shows a lot of potential resistance. The ideal is to have a Stage 2A breakout occur above the cloud. For simplicity sake, above the cloud is good, below the cloud is bad. Thick cloud is heavy resistance and thin cloud is light resistance. However, ichimoku is an extremely complicated subject, and I believe there's more than ten volumes of books by the creator of it to explain it's use. So we are only looking at a small fraction of it, as like Stage Analysis it's a complete trading method of it's own.

Stockcharts have a explaination page that should help you understand it's basic uses here: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:ichimoku_cloud

But in terms of Stage Analysis I just use only the cloud part for visualising potential resistance, as it speeds up manual scans of stocks which are necessary when using Stage Analysis.

(2015-12-08, 03:05 AM)mongoose1969 Wrote: OK...let's see if I get this one right. SWHC looks like it's been in Stage 2 since January 2015 with an upper resistance dating back to October 2007 (assuming that is even accurate). Not suggesting a buy at this point since it looks like the breakout was the January 2015 date, but am I even seeing this right?

(2015-12-08, 08:19 AM)isatrader Wrote:

(2015-12-08, 03:05 AM)mongoose1969 Wrote: OK...let's see if I get this one right. SWHC looks like it's been in Stage 2 since January 2015 with an upper resistance dating back to October 2007 (assuming that is even accurate). Not suggesting a buy at this point since it looks like the breakout was the January 2015 date, but am I even seeing this right?

No. The Stage 2A breakout point for SWHC wasn't until April 2015, as the breakout point that you are refering to didn't meet the Stage Analysis criteria, as in Jan 15 it's still had a declining 30 week MA. See Stans' Don't Commandments in the book. The relative performance was still below it's zero line, and as you can see from the attached chart, it was still below near term resistance. So only one of the four key criteria was met in Jan 15's breakout.



Go back to the Stage Analysis Study Guide - Questions and Answers thread and read about the length of bases etc.

(2015-12-10, 04:10 AM)mongoose1969 Wrote: OK...here is a new one. ZAGG appears to me that it's meeting all the requirements. Volume is up, price above 30 MA, MA trending up, relative strength heading in the right direction, price is above the "cloud". ProRealTime seems to show an upper resistance around $13.

Am I any closer to being better than 25% right?