My additions to the watchlist from Mondays scans - CCR, GC.TO, HEAR, SIV.V, SPHS
A few notes:
HEAR has had an extreme volume surge for three weeks that has taken it through it's near term resistance zone with a multi digit move. So it's one to watch for what happens on it's first significant pullback once this initial Stage 2A high volume thrust has ended. Watch for a contraction in volume when the pullback occurs, as that will guide as to whether it's suitable or not to consider.
SPHS is making a Stage 2A breakout attempt today. The weekly volume is already above it's one year average volume today, so I would assume that by the end of the week it will make the two times requirement (if the breakout holds) that we look for as it still four more trading days.
SIL.V is interesting looking chart with a stock that's shown that it can really move from it's previous Stage 2 advance and has now formed a volatility contraction pattern and approaches the breakout level with a volume surge today. Am watching the 2.55 level
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.
(2018-04-30, 11:42 PM)isatrader Wrote: My additions to the watchlist from Mondays scans - CCR, GC.TO, HEAR, SIV.V, SPHS
A few notes:
HEAR has had an extreme volume surge for three weeks that has taken it through it's near term resistance zone with a multi digit move. So it's one to watch for what happens on it's first significant pullback once this initial Stage 2A high volume thrust has ended. Watch for a contraction in volume when the pullback occurs, as that will guide as to whether it's suitable or not to consider.
SPHS is making a Stage 2A breakout attempt today. The weekly volume is already above it's one year average volume today, so I would assume that by the end of the week it will make the two times requirement (if the breakout holds) that we look for as it still four more trading days.
SIL.V is interesting looking chart with a stock that's shown that it can really move from it's previous Stage 2 advance and has now formed a volatility contraction pattern and approaches the breakout level with a volume surge today. Am watching the 2.55 level
hi isa,
I have some questions again
1. I never fully understood why we need to watch for a contraction in volume when the pullback occurs? and how is that will guide us whether it's suitable or not to consider?
2. Some of you charts have ichimoku clouds and other charts don't have. Is there a particular scenario you use the clouds indicator on top of other indicators?
thanks,
ark,
(2018-05-01, 03:16 AM)arkyuan Wrote: hi isa,
I have some questions again
1. I never fully understood why we need to watch for a contraction in volume when the pullback occurs? and how is that will guide us whether it's suitable or not to consider?
2. Some of you charts have ichimoku clouds and other charts don't have. Is there a particular scenario you use the clouds indicator on top of other indicators?
thanks,
ark,
1. A volume contraction on a significant pullback once a stock has broken out is a key requirement of the method. As the strongest stocks should show stronger volume on the adancing periods and then less volume as they pullback. As strong volume on the pullback would signal something was wrong and that it maybe the end of the advance as buyers are not holding the stock through the pullback, whereas weak volume on the pullback helps to indicate that it's just a normal reaction, and that most are holding the stock through the pullback with a bit of profit taking and then you should see expanding volume again once the advance resumes as people add to their positions and new buyer get on board. However, this is harder to see in large caps as their volume is manipulated becuase they are part of ETF and index funds. So you'll rarely get the volume requirements in large caps which is why they don't often appear in the watchlist scans.
2. I do my custom scans each night in stockcharts and then view the results in the 10 per page view. So that I can quickly scan though the results manually as weekly charts and look for stocks with the requirements we look for. This generates about 100 or so stocks and then I manaully go through the charts from this view to show the most interesting on here. However, sometimes when I see certain patterns I can tell that the stock might be in or under it's near term resistance, so I'll open the chart and change to the ichimoku chart to see. Most of the time this will result in me not including the stock in the watchlist as I only like to include stocks above their resistance, but a few will be on the edge of the resistance or only under thin resistance etc, and so then I show the chart and include the cloud to help highlight that it's different to the other stocks I'm showing. As resistance takes energy out of a breakout, so if a stock has to pass through resistance, it is likely to have an earlier pullback and may need many months after to base again at a higher level. Heavy volume can negate this effect though, but generally if a stock has a heavy resistance to get through, then it will likely need a lot more time in most cases, but not all.
I hope that helps
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.
(2018-05-01, 03:16 AM)arkyuan Wrote: hi isa,
I have some questions again
1. I never fully understood why we need to watch for a contraction in volume when the pullback occurs? and how is that will guide us whether it's suitable or not to consider?
2. Some of you charts have ichimoku clouds and other charts don't have. Is there a particular scenario you use the clouds indicator on top of other indicators?
thanks,
ark,
1. A volume contraction on a significant pullback once a stock has broken out is a key requirement of the method. As the strongest stocks should show stronger volume on the adancing periods and then less volume as they pullback. As strong volume on the pullback would signal something was wrong and that it maybe the end of the advance as buyers are not holding the stock through the pullback, whereas weak volume on the pullback helps to indicate that it's just a normal reaction, and that most are holding the stock through the pullback with a bit of profit taking and then you should see expanding volume again once the advance resumes as people add to their positions and new buyer get on board. However, this is harder to see in large caps as their volume is manipulated becuase they are part of ETF and index funds. So you'll rarely get the volume requirements in large caps which is why they don't often appear in the watchlist scans.
2. I do my custom scans each night in stockcharts and then view the results in the 10 per page view. So that I can quickly scan though the results manually as weekly charts and look for stocks with the requirements we look for. This generates about 100 or so stocks and then I manaully go through the charts from this view to show the most interesting on here. However, sometimes when I see certain patterns I can tell that the stock might be in or under it's near term resistance, so I'll open the chart and change to the ichimoku chart to see. Most of the time this will result in me not including the stock in the watchlist as I only like to include stocks above their resistance, but a few will be on the edge of the resistance or only under thin resistance etc, and so then I show the chart and include the cloud to help highlight that it's different to the other stocks I'm showing. As resistance takes energy out of a breakout, so if a stock has to pass through resistance, it is likely to have an earlier pullback and may need many months after to base again at a higher level. Heavy volume can negate this effect though, but generally if a stock has a heavy resistance to get through, then it will likely need a lot more time in most cases, but not all.
I hope that helps
thanks for the detailed explanations, I learned something new today.
I - this was highlighted around 5 weeks ago https://stageanalysis.net/forum/showthre...7#pid11927 at just over $5 as it's attempted to breakout again. It's since moved over 150% in just over 4 weeks on around 4x the one year average volume every week. So the April monthly volume ended as the most ever for I, at more than 3x the previously maximum monthly volume. So this is now one to watch for a potential pullback entry to form on contracting volume in the coming months.
ILG - Stage 2 continuation breakout to new highs on strong relative volume, after an already extremely long Stage 2 advance. So one for traders method only imo.
IOTS - Stage 2 continuation breakout to new highs
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.
