[isatrader]

Hi Isatrader,
I was hoping you could comment on how you determine BTO.TO to be in stage 1 as opposed to stage  2 breakout? Is it because  30 ema on weekly has not turned up much yet and 10 MA on weekly is not yet rising? I am looking at your checklist.
I attached a chart. Thanks  for clarifying.
Brian

Hi Brian, I've marked up the weekly chart for you to help

But I'd say it had a failed Stage 2 breakout from December, and you would have likely been stopped out if you'd taken it then, as it had months back below the 30 week MA, and so it becomes Stage 1 again, with a new higher breakout point at the February high. As Stage 1 isn't always clean, as the stock can have a few failed breakouts and build a broader range before moving into a proper Stage 2 advance. So watch out for significant resistance from the last two to three years. As even if it does breakout into early Stage 2, it can be held back until it clears that resistance range.

People new to the method always tend to aim to get into early Stage 2, but it's much easier to get in to a stock after the first consolidation base has formed following a Stage 2 breakout. As the trend is then on your side, and resistance has been overcome.

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