(2014-03-06, 02:08 PM)malaguti Wrote: This question is on the pullback method..
I've attached the FTSE350 sector beverages, after going through potentials and then went to an individual stock within the sector..and came up with Sab which is looking identical to the sector, falling relative strength compared to FTSE350 (spx would be the same if not worse)
If my analysis is correct beverages, and Sab have broken down into stage 4 and is now at the pullback stage, on declining volume compared to the breakdown which is all per the book. The stage 3 has lasted for exactly a year, so a nice topping period, but with no topping pattern.
so if everything is as I think, we should be looking for our low risk entry...and this is where the book doesn't really expand upon.
Is there anything that we would look for, possibly on the daily chart? Do we wait for the angle of the 10 to move down.
any advice on this setup..does look like a classic one
I've also attached the daily, which looks like a stage 1 so would a similar approach to the weekly method be the best bet?

thanks all

Quote:Me
Q. Secondary entry point following a Stage 2A breakout – how do you determine the entry point on the pullback? Do you suggest buying while the stock is still correcting, but is close to the original Stage 2A breakout level? Or should we wait until there’s a clear reversal on a daily basis, following a test of the breakout level or close to the breakout level? Or something else?

Stan Weinstein
A. I suggest doing secondary buying when a stock pulls back close to the breakout point, and you then see it stabilize near that level.

(2014-03-12, 04:39 PM)boondock Wrote: Hello, great site, very useful for someone getting into using weinstein methods. My question relates to the use of stop orders in conjunction with weinstein strategies, a lot of trading and investing books recommend using stop on quote orders but I have a hard time trusting their use, so I was wondering how others handled using buy stops as advocated by weinstein. The reason i don't trust; I was looking at ISLE as a possible continuation buy due to my interpretation that it had broken out on 1/27 from a 9 month consolidation pattern then gone into another pennant like consolidation. I set a stop at 9.31 last weekend, with a limit of 9.5 to protect me from getting in at market after a large up gap. THe stock had closed at 9.09 friday, opened 9.02 monday, but my stop triggered and I was in for 9.07. Thankfully I had my eye on my account, and got out of the position with .5% loss as the stock went on to register about a 10% loss over next couple days. Inquiring with my brokerage they reported that the stock had an offer of 9.99 over the weekend and therefore my stop was hit. So how do you weinstein vets use stops buy or sell, when either trying to capitalize on a move from Stage 1b to 2a or protecting capital with sell stops. Do you not use them, only have them in place during trading hours, etc? Read a book on trading by O'Conner that posits sell stops shouldn't be used at all as market makers know where they are and go after them. Given that brokerages trigger stops based on National Best Bid Offer prices, couldn't any punter put in an out of line bid or offer on one share to trigger any stops out there which seems to be the case in the above example? Wasn't sure where to turn for answers to these questions so I'd really appreciate any input. Thanks

Quote:ME
Q. The book had a whole section on buy-stop orders, which I presume has been dropped over the years due to false breakouts that you would get these days? As I read your Technically Speaking interview from 1997 in which you were talking about buying a strong close above the breakout level, and also note in the GTA reports I’ve come across that you always say something like “A breakout (on a closing basis) above that level would be the signal to do buying”. So I’m assuming that the buy-stop section from the book is now void, and that we should be looking to buy breakouts near the close of the day if they are above the breakout level and towards the high of the day?

Stan Weinstein
A. Because of the increasing amount of false breakouts, investors should only do buying when they see that the breakout isn’t false (and that it closes above the given level). However, a trader should do at least partial buying on an intraday basis when it breaks out above the given level (using a buy stop order), and then if at the end of the day it turns out to be false and it closes back below the level, then traders should immediately get out. But if not false and it hasn’t run too far, then later in the session, traders too can do additional buying.

(2014-03-14, 07:35 PM)Sapphire Wrote: Sorry I haven't been on the boards for a while, due to medical reasons. I think I've mastered how to find the smaller priced stocks using this method. I invested in TTHI back in early may when it was trading in the high $2 per share. I think this stock is in stage B right now. What do you think?