[James]

1. The full price action is always helpful, as it lets you see any potential resistance. But it is useful to look at the closing price only chart also, as you can then see when the stock is making new closing highs.

2. Stan didn’t give any additional guidance on whether it applied to short selling also, but the method is very similar both ways, so it’s fairly safe to assume that it would be the same imo. Although, shorting is considerably more difficult, as breakdowns tend to short and sharp with a lot of volatility. So I’d recommend focusing on learning to trade Stage 2 well first. As once you’ve mastered that, you can then try to learn to short.

3. I’d recommend entering continuation breakouts like a trader to minimise risk. As minimising your risk is one of the most important things you can do when trading.

Thanks, all this is as an investor by the way. When placing the initial sell stop under the prior low of the breakout, do I place it at the closing price or the wick? Also what about placing the sell stop if the price breaks the 30 week MA on the correction low after the breakout, do I place it at the close price or wick? And the last thing is, if the price broke the MA but closed inside it, what do I do then on both the correction low and later on in the chart when placing the sell stops? Hopefully you can understand this.