[isatrader]

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

The pullback entry is part of the method that doesn't have a great deal of information unfortunately and was why I asked a question on it to Stan in the Q&A I did last year.

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.

Obviously the question was on the Stage 2A initial pullback, but they are very similar, except I think the Stage 4A initial pullback could move quicker. So he suggests that you wait until you think you see stabilization near the initial level.

My personal preference with this is to see how it behaves around the breakdown level and then first wait for a lower weekly closing price, and then look to go short below the previous weeks low. So in this case if it makes a close tomorrow below 2927, then I'd be looking for a entry below this weeks low of 2865, but it would have to close the day I enter below that level as well for confirmation or I'd want to get out. But as I said, that's just my preference and not what the method recommends.

I also find the 2 hour chart works well with the same settings as the weekly chart, so you can perform an intraday stage analysis to fine tune the entry point.