RE: Beginners Questions
(2015-12-01, 02:55 PM)mongoose1969 Wrote: I spent some time with the newly formed screener last night and all the stocks it screened appear to me to look more like stocks screened for a trader method than an investor method. Looking back through his book and the graphics in both the book and this thread, should the investor method screen ignore volume (in theory, we are trying to predict when the breakout is going to occur so volume wouldn't be large yet) and attempt to screen for pricing below the 30 day moving average?
Here are the conditions I set in an attempt to duplicate the investor method graphic in the book. Am I in error by doing it this way?
The volume component is critical to the method, so for a weekly volume of over two times the weekly average to occur you first need to have a large daily move, and then by the end of the week it will might meet the weekly requirement. If you only look for the completed weekly move, then you will miss the Stage 2A breakout level, as breakouts are fast. So I don't recommend changing the settings of this screen, as large daily moves are necessary for the weekly requirements to be met.
To help understand the method I'd recommend the Stage Analysis Study Guide - Questions and Answers thread, as go deeper into how it works from my research over the years.
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.