[badcharts]

All I can say is wow! Was wondering about traders sell stop.. if it needed to be below a round number, below the correction. Can't remember reading that in the book.

I have been doing episides on my youtube channel practicing, trying to iron out the kinks from not having done Stan in many years.

Everytime I do a new practice run on an instrument, new questions arise. Main reason I'm here, to use the communities experience and have answers.

I still many answers unanswered, such as sma 30 violations for the investor, if NO 7% correction has been observed in the stage 2 run. Does the investor exit? I reasoned myself in saying yes, as Stan mentions the investor should start behaving like the trader when the sma starts to flatten out.

Also, how agressive does the trendline have to be in order to use it for half position exits? Just the 3 contact points? Or an min. angle required (ex. 45`)?

Swing rule. Only double bottoms/tops and head and shoulders accepted as pattrerns? Or anytype of classical chart pattern? If the latter, horizontal breakout lines accepted as well as slanted (ex. symmetrical triangle)?

I now draw my line on candle close. Do i have to use lows and highs for stans framework? Or as long as I'm consistent in its usage?

I'll keep digging in stageanalysis.net incredible wealth of information for answers.

Regards,

Patrick

Allergan (AGN) was said to be consolidating beneath final resistance at 90, and it was recommended as a breakout buy (on a closing basis) above 90. The Trader Stop Loss was given as 85.99 and the Investor Stop Loss was given as 82.99

Trader stop - on the daily chart the last pivot low was 86.45, which had been tested twice in a four day period the previous week, and then had rallied off from it, and was testing the top of the range just below 90. So the suggested stop loss was below the pivot lows, and had been placed below the whole number also.

Investor stop - 82.99 was the recommended level, which below the last notable swing low on the weekly chart of 84.30. The 30 week MA was at 83.86 and so I would have expected it to go below the half point at 83.49, but the 200 day MA may have been considered also which was at 83.20, but I'm still not clear if the 200 day MA is used or not when considering the stop position. But I can't see any other reason for going that far below the 30 week MA on the chart.

ATR distance to stops - For AGN the ATR(200) was 1.564 at the time of the recommendation and so:

• 2.56% ATR - Trader stop distance
  
• 4.48% ATR - Investor stop distance
  

Other observations - AGN also had below average volume for the most part; relative performance versus the S&P 500 was just positive on the weekly, but had been weakening for around six months; and the 30 week MA had just turned up. It had been in a fairly tight range for around four months, but was still moving gradually higher.