[theory6453]

What Theory6453 touches on, with the stocks that rise sharply, the 10 week MA is what acts as the path of support. From what I am seeing, the first touch of the 30 week MA is potentially the start of a stage 3 forming, which could then be a continuation of stage 2.

Hey Tryst... Just wanted to comment on what you said about the 10 wma = support and 30 wma = start of Stage 3... I think that can happen in some cases however imo I wouldn't look to that as any type of rule.

I've attached a chart of SNXFX. This fund is up around 60% over the last 2 years and has broken the 10 wma multiple times and either touched or come close to touching the 30 wma multiple times while still continuing to climb higher and higher.

I got "tricked" into thinking this same thing last year when I read Jesse Stine's Insider Buy Superstocks and his concept of the 10 wma being the "magic line". I can tell you from experience that this magic line was violated just as often as it held. Not to say that the 10 wma won't often offer support, b/c it definitely can and will sometimes... just saying be careful and imo don't stick to that as a hard and fast rule.

What I'm thinking about now is potentially developing some kind of ratio between the 10 wma and 30 wma so if the difference between the 10 wma and 30 wma is greater than say 15% or 20%, then maybe I will use the 10 wma to set my stops... and otherwise I will use the 30 wma. I still need to think it over a bit before deciding if this is something I would like to implement, but this discussion is driving some great ideas and conversation and I'm really enjoying the dialogue.

Cheers,
Mike