[isatrader]

Noticed Barclays over the last few days, potentially about to enter stage 4
Its relative strength (to the FTSE) unfortnately is still +ve but volume is still consistent and rising on downside movement
Its sector is also in exactly the same place awaiting a break of support

Still reading the book, so apologies but I thought I'd update the chart to cover the previous resistance which is so glaringly obvious. so not such a good one after all
Also, I should probably have posted this in the UK stocks area so bear with me

anyway, have included the immediate support and the next level not so far away.
Historically not a particularly good stock, from 3 to 4 to 1, 2 and now 3 and potentially 4 again all in the space of 2 years and price is exactly where it started

Hi malaguti,

No worries, either thread is fine, or even in the traders watchlist thread for potential Stage 4 breakdowns, as shorting is generally more short term in nature except in a major bear market.

One method that I've adopted to help to filter out the less suitable stocks in terms of support and resistance strength and position, is to look at the weekly Ichimoku cloud on stocks that I'm interested in on a secondary chart, as one of the key criteria of the Weinstein's method is that breakouts and breakdowns must be clear of near term resistance. And so this is a very effective way to help see where support and resistance may be I have found, as it is what the Ichmoku cloud is for, and so helps me especially when quickly scanning manually through the charts each day.

In the case of Barclays, which I've attached below, it's not yet through the resistance yet and would need to get below the mid 230s currently, before it had some thinner air.

   

But the best way to ensure you only get into the stocks with the best potential, is to make sure they have the four key criteria which I outlined in the first post on the thread here: http://stageanalysis.net/forum/showthrea...d=57#pid57 as we want to find those A+ stocks that Weinstein talks about in the book. So if they are missing any of the key criteria then move on to the next one, as quality of picks is critical.