(2017-02-12, 08:40 PM)kero Wrote: Atari (Paris).

For once, a question: would you trade a stock such this one ?

Basically I avoid penny stocks, but I really find this setup interesting. Note: the RS is really good.

(2017-02-12, 11:51 PM)isatrader Wrote:

(2017-02-12, 08:40 PM)kero Wrote: Atari (Paris).

For once, a question: would you trade a stock such this one ?

Basically I avoid penny stocks, but I really find this setup interesting. Note: the RS is really good.

The setup looks promising, but it's still Stage 1B currently. I'd say the Stage 2A breakout level looks to be a weekly close above 0.26 or more.

(2017-02-13, 12:12 AM)kero Wrote: Thank you Isa.

Indeed, it looks as being still in stage 1. But to get the stock on the breakout, when it is starting the stage 2, shouldn't the entry stop order to be placed before the stage 2 starts ?

This actually leads me to a question. I work - accordingly with Weinstein's book - by placing stop orders before stage 2 start, so I can get the breakout when it happens (when the stage 2 starts). Now, by reading you guys, I have often the feeling that you don't enter your order before the breakout is confirmed by closure level and volume: this means that you only enter the day(s) after the breakout. Am I right ?

(2017-02-13, 01:32 AM)kero Wrote: Ok, I see the point.

It's true that false breakouts are are really painful and I was thinking, recently, about the possibility of trading only confirmed breakouts. It can also be a way to avoid having lots of waiting orders which are never executed (which is a lot of work to handle). It makes it easier to select interesting positions.

I'll reconsider that now. Thank you Isa.

Just two related quick question:
1) in the investor method, do you wait for the weekly close, or the daily close is enough for you to decide wether to buy ?
2) Do you enter at the price level of the closing, or do you only buy at the level of the breakout (acting as in the pullback method) ?