I think the Canadian cannabis shares will run again ahead of the vote on June 7. Sector HMMJ.TO is starting to shape back up on the Macd etc. LEAF and THCX appear to have the highest relative strength.
(2018-05-09, 02:41 PM)shaunattwood Wrote: I think the Canadian cannabis shares will run again ahead of the vote on June 7. Sector HMMJ.TO is starting to shape back up on the Macd etc. LEAF and THCX appear to have the highest relative strength.
It's an area I've been watching too, LEAF.TO has been on the watchlist twice in the last month, but the other stocks haven't been behaving as well as it is. So watching closely...
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.
For the watchlist tonight. I had double the amount of stocks that I normally have to go through from my volume scans tonight, so a positive bit of breadth there. Most were stocks already on the watchlist, but energy stocks continue to dominate every day in the volume scans as they have for the last few months. So if you are using the Forest to the trees approach, as you should be to trade Stans method effectively Then you should have managed to get into some energy stocks at good entry points recently, as it's been the only sector that's been getting volume across the board with multiple Stage 2 breakouts - so is what Weinsteins method is all about.
However, I'm not saying that now is the right time if you haven't though, as a lot of energy stocks have had huge moves for more than a month or so now. So hence you may need to wait for better entry points to form again if you missed the initial breakouts. Although you may still find some, but be aware of risk as we could start to see sector rotation if the market recovers further as risk tolerance increases.
Definatley a good idea to apply a trading framework to other time frames than the current one.
1- Use a higher timeframe to validate the higher prevailing trend.
2- Use a smaller timeframe to obtain "health check" of the breakout candle before entry. Ex. Was that pull back on the breakout candle (wick) on contracting volume?
3- Smaller timeframe also offer, like you mention, precision on entry. Like looking in a mirrior with a mirror.. if you can align just right and have a monthly breakout, with a weekly breakout, with a daily breakout simultaneously on those 3 time frames.. then WOW! I guess that could only happen at the end of the month ending on a friday! Â badcharts
Need more coffee.... mmm or maybe had too much already!?!?
Regards,
Patrick
(2018-05-06, 10:52 PM)isatrader Wrote:
(2018-05-06, 09:26 PM)badcharts Wrote: Will check fiddle around with your ideas and see what type of results I come up with.
Another idea might simply be to create a chartlist of all the early Stage 2 breakouts already in progress. i.e making their first or second significant advance higher following the initial Stage 2A breakout point on heavy volume i.e during wave 1 or wave 3 if you like Elliott wave theory. And then just simply look through the chartlist at the end of each week for the first multi week pullback.
At that point if you drop down the timeframes to the 2 hour chart, you can practice Stage Analysis on an intraday level to perfectly time the entry point, as the pullback on the 2 hour chart will present as a Stage 4 decline if you setup the 2 hour chart with the same settings as the weekly chart.
So you simply wait for the stocks Stage 1 base to form on the 2 hour chart, and monitor the volume of the decline compared to the 2 hour Stage 2 advance that just preceeded it. Then as the pullback slows you should see a Stage 1 base forming on the 2 hour chart, which after the initial bounce will give you a level to watch for a Stage 2A breakout as it would on the weekly, you can even use the 2 hour ichimoku cloud to see resistance. Then as with a weekly Stage 2A breakout, all the same rules apply. The breakout above that Stage 1 level should be on at least 2x the volume on the 2 hour chart, and it should be relatively outperforming the S&P 500, or it's a pass.
This multi timeframe method on pullbacks is not part of Stans method, but something I've used to good effect many times, and something that I'm continuing to refine as my own improvement to the Stage Analysis method. As well as a multi timeframe approach on the breakouts, where I use the monthly, weekly, daily and 2 hours charts.
(2018-05-07, 12:53 AM)badcharts Wrote: Isa,
You're forcing me to take a nice warm coffe and read this correctly!
I also look at the higher trend to confimr the "wind" direction and look at smaller timeframes to confirm (for non-marabuzo candles) if the pullback was (wick) done on contracting volume (healthy). You are right, you become more more procficient in avoiding whipsaws when you levergae different timeframes.
I somethimes feel like I'm in the movei "Inception" when manipulating different timeframes. kinda cool actually when I think of it.
Always great getting your feeback!
Regards,
Patrick
(2018-05-06, 10:52 PM)isatrader Wrote:
(2018-05-06, 09:26 PM)badcharts Wrote: Will check fiddle around with your ideas and see what type of results I come up with.
Another idea might simply be to create a chartlist of all the early Stage 2 breakouts already in progress. i.e making their first or second significant advance higher following the initial Stage 2A breakout point on heavy volume i.e during wave 1 or wave 3 if you like Elliott wave theory. And then just simply look through the chartlist at the end of each week for the first multi week pullback.
At that point if you drop down the timeframes to the 2 hour chart, you can practice Stage Analysis on an intraday level to perfectly time the entry point, as the pullback on the 2 hour chart will present as a Stage 4 decline if you setup the 2 hour chart with the same settings as the weekly chart.
So you simply wait for the stocks Stage 1 base to form on the 2 hour chart, and monitor the volume of the decline compared to the 2 hour Stage 2 advance that just preceeded it. Then as the pullback slows you should see a Stage 1 base forming on the 2 hour chart, which after the initial bounce will give you a level to watch for a Stage 2A breakout as it would on the weekly, you can even use the 2 hour ichimoku cloud to see resistance. Then as with a weekly Stage 2A breakout, all the same rules apply. The breakout above that Stage 1 level should be on at least 2x the volume on the 2 hour chart, and it should be relatively outperforming the S&P 500, or it's a pass.
This multi timeframe method on pullbacks is not part of Stans method, but something I've used to good effect many times, and something that I'm continuing to refine as my own improvement to the Stage Analysis method. As well as a multi timeframe approach on the breakouts, where I use the monthly, weekly, daily and 2 hours charts.
Definatley a good idea to apply a trading framework to other time frames than the current one.
1- Use a higher timeframe to validate the higher prevailing trend.
2- Use a smaller timeframe to obtain "health check" of the breakout candle before entry. Ex. Was that pull back on the breakout candle (wick) on contracting volume?
3- Smaller timeframe also offer, like you mention, precision on entry. Like looking in a mirrior with a mirror.. if you can align just right and have a monthly breakout, with a weekly breakout, with a daily breakout simultaneously on those 3 time frames.. then WOW! I guess that could only happen at the end of the month ending on a friday! Â badcharts
Need more coffee.... mmm or maybe had too much already!?!?
Regards,
Patrick
From my research of the best A+ Stage 2 breakouts, if you waited for the monthly close before entering then you would miss the entry by a long way on most stocks if they broke out early in the month. The key to this is the volume. That is what gives you the confidence to enter at the correct Stage 2A entry point without having to wait for the weekly or monthly close as confirmation, as on the A+ stocks the monthly volume on the breakout will be many multiples of the average volume, and should really stand out from the rest of the volume. This huge volume is what gives you the confidence to enter at the right point, as you should be able to see that the monthly will be at least 2x by the end of the month, but with the A+ stocks what you really want to see is the most monthly volume it's had by a long way.
Then the monthly can be used as additional confirmation, as if it then doesn't meet the monthly requirements when you get to the close of the month, then you would exit early, as an A+ stock always would.
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.
A very large amount of for the watchlist tonight as there were various types of breakouts in the major market averages. So I'll spilt the post into two.
Note: The solar etf made it into the watchlist, and have seen a few solar stocks in the list over the last week including today, so an area for more research maybe.
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.
Then you should have managed to get into some energy stocks at good entry points recently, as it's been the only sector that's been getting volume across the board with multiple Stage 2 breakouts - so is what Weinsteins method is all about. 