RE: Beginners Questions
(2013-03-08, 01:37 AM)goodtyneguy Wrote: Stage 1 - Basing Phase. May begin accumulation.
I don't recall this in the book, is it a refinement since the book was published and what's the set up and trigger to begin accumulation?
This is part of the newer definitions of the Stages taken from the Global Trend Alert Newsletter than Weinstein does for institutional investors. Unfortunately we don't have any additional specific information other than some passing comments in the recent interviews on the Financial Sense Newshour. Here's the link to the four interviews since November 2011 if you haven't heard them: https://www.financialsense.com/contribut...-weinstein
So there's no setup or trigger that was mentioned, only that longer term investors can start to average into positions once in a stable Stage 1 range. And also more aggressive traders are allowed to make short term plays within the broader range, but again we have no specific criteria for how you should play it.
(2013-03-08, 01:37 AM)goodtyneguy Wrote: Trialing Investor Stop Loss Orders(page 184)
go below/above the 30 week moving average in the strongest phase of stage 2/4 of the move, any thoughts on how far below/above?
Again, this is not specific, but if you place your stop below the 30 week SMA that he is suggesting for an investor stop, then even a close stop to that would likely be a long distance from the majority of the price action in a Stage 2 range. So it's always a judgement call and you should also consider other previous support and resistance levels nearby. As if they are close, then it should also go below those as well imo, to be safest. Sometimes you'll get whipsawed out of a position, but I believe he said that you should continue monitoring it and be willing to get back in if it makes a continuation move following a whipsaw.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.