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RE: Beginners Questions - crotchetyrocket - 2015-02-18
Hello All, I just had a few questions regarding the method and thought I'd post them here since I'm sure they will come off as newbie questions, andwyas these questions are being framed using the Trader method
1. How is it that you can use the P&F breakouts charts when the price has already broken out, unless am I correct in assuming you are getting in on the more conservative pullbacks? And where can I find the traders method premium thread?
2. In regards to breadth indicators I understand that the give a general idea of the strength or in the market, but how do you deal with conflicting breadth indicators, breadth on different time frames such as the daily and weekly, or are there breadth indicators you focus on more than others based on the trader or investor method?
3. I noticed that for the trader method (well and the investor method)that you have included more checklist items for the daily and monthly timeframes, would you recommend taking trades using the daily chart or the weekly, because in the book there where examples using both time frames?
4. I think my biggest weakness is identifying potential areas of S/R that could hinder the progress of the trade; are there any resources you would recommend on using the the weekly Ichimoku cloud ?
RE: Beginners Questions - isatrader - 2015-02-18
(2015-02-18, 07:17 PM)crotchetyrocket Wrote: Hello All, I just had a few questions regarding the method and thought I'd post them here since I'm sure they will come off as newbie questions, andwyas these questions are being framed using the Trader method
1. How is it that you can use the P&F breakouts charts when the price has already broken out, unless am I correct in assuming you are getting in on the more conservative pullbacks? And where can I find the traders method premium thread?
P&F charts are very useful for additional confirmation of the Stages, as using the traditional P&F scaling settings, they tend to be quite long term in what they show, as they filter out a lot of the noise. And hence are similar to looking at the monthly charts. They are also are excellent for identifying key support and resistance levels, and can be used as another relative performance tool to compare stocks to each other or to an index like the S&P 500. So I show them when they offer useful additional information to what the weekly and daily charts are showing.
In regards to using them when the price has already broken into Stage 2. You'd wait for the column of Xs to reverse to Os, and then either pullback to a previous support level for a pullback entry, or buy on the continuation breakout when the column reverses back to Xs again after a minor pullback and make a new double top buy signal. (i.e. the current column of Xs, moves above the previous column of Xs). So when this occurs within a strong Stage 2 advance, it is a trader method entry point.
You can find the premium thread for US stocks - which is for both the investor and trader methods, in the Stage Analysis (Premium) section of the Elite Board, and it's called US Stocks - Watchlist and Discussion (Premium)
(2015-02-18, 07:17 PM)crotchetyrocket Wrote: 2. In regards to breadth indicators I understand that the give a general idea of the strength or in the market, but how do you deal with conflicting breadth indicators, breadth on different time frames such as the daily and weekly, or are there breadth indicators you focus on more than others based on the trader or investor method?
Weinstein's method focuses on what he calls the "Weight of Evidence" approach, that looks at 50+ different market breadth measures. The idea is that it's like an index of breadth measures where you are looking for the average of what they are all telling you collectively, as not all will be positive or negative at the same time, and hence some may give you conflicting signals. As the idea is not to focus on one breadth indicator alone, and to workout what the Weight of Evidence is telling you.
So for example the breadth started off the year in a very neutral position after recovering from a flush out in October, where some hit their lower ranges, and had recovered back neutral areas. But the last few weeks the breadth improved significantly with breakouts in multiple breadth measures, and so the weight of evidence is currently on the more bullish side of the spectrum. And so as the market is in gear, using the trader method, you'd be looking for Stage 2 continuation breakouts, or stocks consolidating near to their highs that are making volatility contraction patterns (i.e. cup and handle type patterns), that are on verge of a potential continuation breakout.
(2015-02-18, 07:17 PM)crotchetyrocket Wrote: 3. I noticed that for the trader method (well and the investor method)that you have included more checklist items for the daily and monthly timeframes, would you recommend taking trades using the daily chart or the weekly, because in the book there where examples using both time frames?
The Stages are worked out using the weekly charts, which is why they were used in the book examples I believe. But if you are using the trader method you'll need to focus on the daily chart more.
(2015-02-18, 07:17 PM)crotchetyrocket Wrote: 4. I think my biggest weakness is identifying potential areas of S/R that could hinder the progress of the trade; are there any resources you would recommend on using the the weekly Ichimoku cloud ?
Stockcharts has a quick guide http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:ichimoku_cloud and some references to books. But if you are using the trader method, then it's quite simple in regards the weekly cloud. Don't trade anything below it. As trader method stocks should generally always be in a strong Stage 2 advance already in normal market conditions, and so would be above the weekly cloud resistance.
RE: Beginners Questions - crotchetyrocket - 2015-02-18
Thanks again isatrader, I think I'm going to have to sit down with the book and go a few more rounds
RE: Beginners Questions - GlobalCitizen - 2015-04-14
Hello everyone,
I have 3 questions.
1. Are upgrades/downgrades by analysts of influence on the stages of the different stocks you hold?
2. Is there a certain timeframe for a stock to go through all 4 stages?
3. What do you guys consider as a break-out? Is there a minimum certain amounts of points it has to go up?
RE: Beginners Questions - isatrader - 2015-04-14
(2015-04-14, 04:38 PM)GlobalCitizen Wrote: Hello everyone,
I have 3 questions.
1. Are upgrades/downgrades by analysts of influence on the stages of the different stocks you hold?
2. Is there a certain timeframe for a stock to go through all 4 stages?
3. What do you guys consider as a break-out? Is there a minimum certain amounts of points it has to go up?
Hi GlobalCitizen,
1. Upgrades and downgrades aren't relevant in Stage Analysis as it's a 100% technical method that focuses on the price action, relative performance and support/resistance
2. On average I'd say you get a full Stages cycle in a stock every 1 to 3 years
3. Examples of Stage 2A breakouts can be seen in multiple places on the site, but there are numerous examples in the Investor Method Watchlist thread. But to understnad how to find the best quality Stage 2A breakouts see the Stage Analysis Study Guide - Questions and Answers thread which expands on the book and goes into detail about what to look for.
Also I'd recommend going through the book a second time at least, but this time make notes as you'll get a much better understanding if you do.
I hope that helps
RE: Beginners Questions - GlobalCitizen - 2015-04-15
(2015-04-14, 06:36 PM)isatrader Wrote:(2015-04-14, 04:38 PM)GlobalCitizen Wrote: Hello everyone,
I have 3 questions.
1. Are upgrades/downgrades by analysts of influence on the stages of the different stocks you hold?
2. Is there a certain timeframe for a stock to go through all 4 stages?
3. What do you guys consider as a break-out? Is there a minimum certain amounts of points it has to go up?
Hi GlobalCitizen,
1. Upgrades and downgrades aren't relevant in Stage Analysis as it's a 100% technical method that focuses on the price action, relative performance and support/resistance
2. On average I'd say you get a full Stages cycle in a stock every 1 to 3 years
3. Examples of Stage 2A breakouts can be seen in multiple places on the site, but there are numerous examples in the Investor Method Watchlist thread. But to understnad how to find the best quality Stage 2A breakouts see the Stage Analysis Study Guide - Questions and Answers thread which expands on the book and goes into detail about what to look for.
Also I'd recommend going through the book a second time at least, but this time make notes as you'll get a much better understanding if you do.
I hope that helps
Hello,
Thanks for answering my question. I know what break-outs in general are, since it is in the book but I think I didn't formulate the question right. I don't want anybody to think that I didn't read the book. No problem though, I will look through the threads that u listed, to study these stage 2a break-outs better. They should clear everything up! Thank u for everything so far!
RE: Beginners Questions - isatrader - 2015-04-15
(2015-04-15, 06:28 PM)GlobalCitizen Wrote: Thanks for answering my question. I know what break-outs in general are, since it is in the book but I think I didn't formulate the question right. I don't want anybody to think that I didn't read the book. No problem though, I will look through the threads that u listed, to study these stage 2a break-outs better. They should clear everything up! Thank u for everything so far!
I wasn't implying that you hadn't read the book, I just meant that it would be of great benefit to you to go through the book a second time and to make notes along the way, as you won't take in all the information on first go reading the book and will need multiple reads to get to grips with all the different parts of the method.
Also as I said before. Make sure you visit the Elite Board this week during your one week free trial as there's a great deal of information in there and thousands of live examples of Stage 2A breakouts and continuations that will help you understand the method. So I'd recommend that you take advantage of it while it's free.
RE: Beginners Questions - GlobalCitizen - 2015-04-15
(2015-04-15, 07:35 PM)isatrader Wrote:(2015-04-15, 06:28 PM)GlobalCitizen Wrote: Thanks for answering my question. I know what break-outs in general are, since it is in the book but I think I didn't formulate the question right. I don't want anybody to think that I didn't read the book. No problem though, I will look through the threads that u listed, to study these stage 2a break-outs better. They should clear everything up! Thank u for everything so far!
I wasn't implying that you hadn't read the book, I just meant that it would be of great benefit to you to go through the book a second time and to make notes along the way, as you won't take in all the information on first go reading the book and will need multiple reads to get to grips with all the different parts of the method.
Also as I said before. Make sure you visit the Elite Board this week during your one week free trial as there's a great deal of information in there and thousands of live examples of Stage 2A breakouts and continuations that will help you understand the method. So I'd recommend that you take advantage of it while it's free.
Yes, I already started reading the book again last week. It is a lot of information and taking notes is always a plus. The elite board is of great help from what I can tell. Time to get my study on!