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RE: Beginners Questions - CH868 - 2015-04-28
I would like to know how to calculate profit/risk ratio, thanks.
RE: Beginners Questions - isatrader - 2015-04-29
(2015-04-28, 07:35 PM)CH868 Wrote: I would like to know how to calculate profit/risk ratio, thanks.
Multiply the distance of your target from your entry by the distance of your stop loss from your entry. The method recommends a profit target of at least 3x the stop loss distance.
RE: Beginners Questions - fattonytp - 2015-05-17
For foreign exchange and commodity products, would it be preferable to use weekly chart or daily chart to perform the stage analysis?
From reading Stan Weinstein's book, in page 331, he mentioned that the same formations will occur on futures charts as on stock charts, but with futures the process is far more rapid. It's like playing a record that was recorded at 33 rpm at 78 rpm. You have to be much more sensitive and develop a short-term feel if you're going to stick your toe into the futures pit. This is not an area where you can check your prices only on the weekend. Daily contract is vital!
So, does using the weekly 30 EMA to define the stage still work for futures markets or it should strictly be applied to stocks only?
Thank you.
RE: Beginners Questions - malaguti - 2015-05-17
(2015-05-17, 05:53 AM)fattonytp Wrote: For foreign exchange and commodity products, would it be preferable to use weekly chart or daily chart to perform the stage analysis?
From reading Stan Weinstein's book, in page 331, he mentioned that the same formations will occur on futures charts as on stock charts, but with futures the process is far more rapid. It's like playing a record that was recorded at 33 rpm at 78 rpm. You have to be much more sensitive and develop a short-term feel if you're going to stick your toe into the futures pit. This is not an area where you can check your prices only on the weekend. Daily contract is vital!
So, does using the weekly 30 EMA to define the stage still work for futures markets or it should strictly be applied to stocks only?
Thank you.
Fat Tony, you've almost made up your own mind it seems. Daily is vital to you.
What about the hourly, 5 minute charts why stop at daily as its moving so fast?
One thing I got from reading the book, is that its not prescriptive and its open to interpretation yet Stan gives us a methodology that works for him and gives us more and more clues to help things in our favour. Lo an behold it works for me too.
the 30MA on a weekly is used to HELP identify the transition from stage 1, to 2, to 3 and then 4. Why not pull up a chart that you want analysis on, and you tell US whether you can identify that transition using daily, with a 30MA.
Then do the same analysis using a weekly. Is it easier? You can make that call after reading the book yourself
Personally I am now able to identify these transitions on any timeframe, but they become more erratic sometimes the lower you go. But thats dependent sometimes on an individual by individual case and it might mean using a different period MA
If you'd like help in identifying the stages, pull up your chart, and lets start analysing it rather than dismissing the whole methodology based your view of the contract market (which at the end of the day is not actually going to be that dissimilar from cash prices)
RE: Beginners Questions - fattonytp - 2015-05-17
(2015-05-17, 09:17 AM)malaguti Wrote: Fat Tony, you've almost made up your own mind it seems. Daily is vital to you.
What about the hourly, 5 minute charts why stop at daily as its moving so fast?
One thing I got from reading the book, is that its not prescriptive and its open to interpretation yet Stan gives us a methodology that works for him and gives us more and more clues to help things in our favour. Lo an behold it works for me too.
the 30MA on a weekly is used to HELP identify the transition from stage 1, to 2, to 3 and then 4. Why not pull up a chart that you want analysis on, and you tell US whether you can identify that transition using daily, with a 30MA.
Then do the same analysis using a weekly. Is it easier? You can make that call after reading the book yourself
Personally I am now able to identify these transitions on any timeframe, but they become more erratic sometimes the lower you go. But thats dependent sometimes on an individual by individual case and it might mean using a different period MA
If you'd like help in identifying the stages, pull up your chart, and lets start analysing it rather than dismissing the whole methodology based your view of the contract market (which at the end of the day is not actually going to be that dissimilar from cash prices)
malaguti, thanks for sharing your view.
I agree the methodology would work regardless of the time frame.
RE: Beginners Questions - fattonytp - 2015-05-25
Please could I check whether you would short this stock chart based on the stage analysis method?
![[Image: C88b8wm.png]](http://i.imgur.com/C88b8wm.png)
- This stock is in stage four decline
- It's relative strength is weak relative to the overall index
- Volume on pullback was weak (although last week's volume was high)
Any thoughts?
RE: Beginners Questions - isatrader - 2015-05-25
(2015-05-25, 03:26 PM)fattonytp Wrote: Please could I check whether you would short this stock chart based on the stage analysis method?
- This stock is in stage four decline
- It's relative strength is weak relative to the overall index
- Volume on pullback was weak (although last week's volume was high)
Any thoughts?
The volume on last weeks reversal was very strong in comparison to the down volume during the Stage 4 decline, which is the opposite to what the method looks for, and it closed back above the 10 week MA. So it would not meet the methods requirements currently imo as it is showing some very early signs of basing, but would become more interesting if the volume on the down days increased significantly.
RE: Beginners Questions - Amedee - 2015-06-04
I am keeping track of all my trades in a diary in excel and I drawn my PnF charts by hand in excel (where I can add additional notes).
Nevertheless, I am still looking for a better diary system...
I came along this app which look very professional. It's not only about position sizing but it is also about the overall risk involved (open risk) according to the methods of Alexander Elder.
See this trading diary manual
and this review
One can download the lite version app for iPad to try.
The full version is about €100.
I think this one is worth the 'investment'.
Any other ideas or suggestions?