Stage Analysis - Trading and Investing using Stan Weinstein's Four Stage Breakout method
Stage Analysis Beginners Questions - Printable Version

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RE: Beginners Questions - isatrader - 09-08-2013

(09-08-2013, 01:25 PM)theory6453 Wrote: To follow up on P&F, do you have a high-level threshold for P&F where you move from traditional box down to percentage P&F chart? (i.e. - Price > $10 use traditional P&F; Price < $10 use percentage method) Is there an in-between method? Is there a price range where you might look at both.

With P&F charts I look at multiple box sizes and percentage and traditional scaling, much the same as with line charts I look at monthly, weekly and daily charts, and use the log and linear scales to get different perspectives. So I'd suggest looking at both if you can, but if you want a standard setting for an at a glance look that works well across all kinds of stocks then a 1% box size by 3 reversal is a good starting point.

A good free learning tool is the Dorsey P&F University which has six lesson sections with quiz questions at the end of each section to make sure you've understood what you've learnt.

(09-08-2013, 01:25 PM)theory6453 Wrote: On an another note, I was re-reading Stan's section on sell stops last night. His advice was to set the stop just below the nearest round number (i.e. - $17 7/8) Now, of course, this was back in the 80s when stocks were tracked in eighths of a point. Do you have a guideline that you follow to adhere to this rule that is more up-to-date? To your point earlier, depending on the price of the stock, $0.12 could be quite significant and maybe there is a tighter rule we could be following now that stocks are traded in much smaller fractions of a point.

I've done a thread on this in the Elite section called the Stop Loss Positioning Guide in which I've analyzed stop loss positions from recommendations in Weinstein's Global Trend Alert Newsletter.

For others reading this - the thread is only available to subscribers to the site, so if you want to be able to access it you need to become become an Elite Member. Subscription details can be found on the front page of the forum here: http://stageanalysis.net/forum/index.php#anchor


RE: Beginners Questions - theblackmamba - 09-08-2013

for my us scans I use an average 90 day volume > 200,000 a day..anything less is generally regarded as too thin..


RE: Beginners Questions - theory6453 - 09-08-2013

(09-08-2013, 04:52 PM)isatrader Wrote:
(09-08-2013, 01:25 PM)theory6453 Wrote: To follow up on P&F, do you have a high-level threshold for P&F where you move from traditional box down to percentage P&F chart? (i.e. - Price > $10 use traditional P&F; Price < $10 use percentage method) Is there an in-between method? Is there a price range where you might look at both.

With P&F charts I look at multiple box sizes and percentage and traditional scaling, much the same as with line charts I look at monthly, weekly and daily charts, and use the log and linear scales to get different perspectives. So I'd suggest looking at both if you can, but if you want a standard setting for an at a glance look that works well across all kinds of stocks then a 1% box size by 3 reversal is a good starting point.

A good free learning tool is the Dorsey P&F University which has six lesson sections with quiz questions at the end of each section to make sure you've understood what you've learnt.

(09-08-2013, 01:25 PM)theory6453 Wrote: On an another note, I was re-reading Stan's section on sell stops last night. His advice was to set the stop just below the nearest round number (i.e. - $17 7/8) Now, of course, this was back in the 80s when stocks were tracked in eighths of a point. Do you have a guideline that you follow to adhere to this rule that is more up-to-date? To your point earlier, depending on the price of the stock, $0.12 could be quite significant and maybe there is a tighter rule we could be following now that stocks are traded in much smaller fractions of a point.

I've done a thread on this in the Elite section called the Stop Loss Positioning Guide in which I've analyzed stop loss positions from recommendations in Weinstein's Global Trend Alert Newsletter.

For others reading this - the thread is only available to subscribers to the site, so if you want to be able to access it you need to become become an Elite Member. Subscription details can be found on the front page of the forum here: http://stageanalysis.net/forum/index.php#anchor

Thanks Isa! You are PhD of Weinstein-ology!Big Grin


RE: Beginners Questions - theory6453 - 09-08-2013

(09-08-2013, 05:50 PM)theory6453 Wrote:
(09-08-2013, 04:52 PM)isatrader Wrote:
(09-08-2013, 01:25 PM)theory6453 Wrote: To follow up on P&F, do you have a high-level threshold for P&F where you move from traditional box down to percentage P&F chart? (i.e. - Price > $10 use traditional P&F; Price < $10 use percentage method) Is there an in-between method? Is there a price range where you might look at both.

With P&F charts I look at multiple box sizes and percentage and traditional scaling, much the same as with line charts I look at monthly, weekly and daily charts, and use the log and linear scales to get different perspectives. So I'd suggest looking at both if you can, but if you want a standard setting for an at a glance look that works well across all kinds of stocks then a 1% box size by 3 reversal is a good starting point.

A good free learning tool is the Dorsey P&F University which has six lesson sections with quiz questions at the end of each section to make sure you've understood what you've learnt.

(09-08-2013, 01:25 PM)theory6453 Wrote: On an another note, I was re-reading Stan's section on sell stops last night. His advice was to set the stop just below the nearest round number (i.e. - $17 7/8) Now, of course, this was back in the 80s when stocks were tracked in eighths of a point. Do you have a guideline that you follow to adhere to this rule that is more up-to-date? To your point earlier, depending on the price of the stock, $0.12 could be quite significant and maybe there is a tighter rule we could be following now that stocks are traded in much smaller fractions of a point.

Per PnF University Lesson 1: Stock prices only. Commodities and ETFs will have different ranges...

If Stock= $0 - $5 then Box Size= .25
If Stock= $5 - $20 then Box Size= .50
If Stock= $20 - $100 then Box Size= 1.00
If Stock= $100 - $200 then Box Size= 2.00
If Stock= $200+ then Box Size= 4.00


RE: Beginners Questions - isatrader - 09-08-2013

(09-08-2013, 08:10 PM)theory6453 Wrote: Per PnF University Lesson 1: Stock prices only. Commodities and ETFs will have different ranges...

If Stock= $0 - $5 then Box Size= .25
If Stock= $5 - $20 then Box Size= .50
If Stock= $20 - $100 then Box Size= 1.00
If Stock= $100 - $200 then Box Size= 2.00
If Stock= $200+ then Box Size= 4.00

Yep, that's the pricing method for the traditional box sized charts, which is what you will learn to use first.


RE: Beginners Questions - goodtyneguy - 09-16-2013

Was thinking about shorting TATE today. What is the quickest way to look up a LSE listed stocks earnings release date and it's short ratio?

Thanks.


RE: Beginners Questions - isatrader - 09-16-2013

(09-16-2013, 06:19 PM)goodtyneguy Wrote: Was thinking about shorting TATE today. What is the quickest way to look up a LSE listed stocks earnings release date and it's short ratio?

Bloomberg has a useful calendar that you can go through here: http://www.bloomberg.com/apps/ecal?c=GB

On the subject of short interest, I don't think there is a free service for UK stocks. They all seem to be subscription only unfortunately like most things for UK stocks.


RE: Beginners Questions - JimStudent - 09-20-2013

First thanks for the site. I also appreciate your posts from the Trade2win site, especially the posts showing all the examples of stage analysis from the Global Trend Alert Newsletter.

Some of the things I am looking for might already be on one of the sites, maybe you could point me in the right direction. (I am real beginner, I'm just learning how to build charts.)

I would like to see how to build a chart from scratch like the ones you use from the Pro Real Time Software. How do I build a chart to make it identical to yours for the purpose of learning?

I would love to see a place on thread on the board that described all the technical indicators we are looking for from Stan Weinstein's method. Maybe a technical indicator would have a thread that told what it was, specifics on how to find that technical indicator, and what does that indicator tell us about the current market.

As I read chapter 8 on 'Using the best long-term indicator to spot bull and bear markets', Weinstein discusses the top 11 indicators of the 50 or 100 he follows. He describes the 30 wk ma, stage analysis, NYSE A/D line, A/D line American Stock Exchange, Momentum Index of the A/D line, Weekly new high / new lows, world markets, GM, Price Dividend Ratio, and contrary opinion. If each technical indicator had it's own thread (this is what it is, this is how you create it), then as we learned we could help keep the board up to date.

I would also love to see a thread on Sectors, I am in the U.S, but maybe we could have U.S and U.K. sectors (again the thread would be this is what the sectors are, and this is how you find and build their charts) As I learn how to create the charts and what to look for I would be glad to contribute to keeping them up to date.

Those areas would help us with the first two steps of Weinstein's system, checking the overall direction of the market and scanning the groups to know which ones to zero in on.

One other thread I would like to see is one place where all Stan Weinstein's resources are referenced. Examples would be all of the links to Global Trend Alerts that are posted - the March 2005 Global Trend alert and the interviews are examples that could be in the Weinstein Resources Thread.

Again thank you, and as I learn I hope I can contribute to the forum.