[isatrader]

Hi there

First post. Thank you for your this forum. It is very useful.

I am learning and I did my first analysis.



I think PLUG is a very good example. It has 2 breakouts. First without pullback and second with it. Third pullback would be after 4.90

What do you think? Thanks

Hi musgooo, welcome to the site.

It's a good first analysis, well done. But you missed the Stage 2A breakout point by one, as the first breakout you identified was actually the 1st Stage 2 continuation move, as the Stage 2A breakout point occurred on week ending the 6th September 2013 at 0.6829, however, it was still below some near term resistance due to the length of it's decline and so the initial breakout stalled for three months while it worked through that resistance until it was able to make the first Stage 2 continuation move.

Below is the chart how it looked at the Stage 2A breakout point back in early September 2013.



The reason it's hard to see is that your chart is using standard scaling and PLUG has already moved a long way in a short time of nearly 600%. It's funny, as it's actually one of my positions, as I got in on the 3rd January 2014 at $2.65 just after what you've marked as the second breakout, which was actually the second continuation move. And so, if it breaks and closes above the current swing high of $4.90 then it will be making it's third potential continuation move.

Stage analysis should be done firstly on a weekly chart. So setup your weekly chart with logarithmic scaling and a 30 week MA, and with the relative performance versus the S&P 500 and volume as in the attached example. As having your charts setup in the same way as in the book and this site will help you to be able to compare to what you are seeing with the multiple examples on here, and so will help you learn quicker.

I'm happy to help with any questions that you might have, but if you are interested in learning the method then I'd recommend getting Weinstein's book first and starting there, as then you'll be able to understand the examples and any discussions on the site much easier and as I said I'll be happy to help with any questions that you might have.

Below is the up to date marked up weekly chart.