[badcharts]

Hi Isa,

Some thoughts running through my mind...

I find your scans to be "on point". I love giving creadit to stageanalysis.net on my podcasts, and hope other Stan Weinstein advocates come over here to get them properly started.

They often inspire me to look at new tickers not yet under my radar + they are in line with Stan Weinstein framework

I'm thinking what would be nice is a scanner for pullbacks on low volume, occuring 1-3 months after a bonified breakout is confirmed.

Advantages:
1- Increase position size , skewing risk to reward in your favor risk (closer entry to breakout line, means bigger posisiton size to a limit of 1% potential impact on nav)
2- Reduce chance of landing on a "emotion landmine" by jumping the gun on a "possible" breakout not yet "triply confirmed"
3- Another "healthy" aspect of stage 2 or stage 4 is the initial pullback on contracting volume. If you get in early on breakoutm there is some chance that you might pull back on high volume => warning sign !
4- In other words, avoid potentiel whipsasws with false breakouts

Disadvantages:
1- Miss out on breakouts that never pullback

I don't really mind the disadvantage, as that can be overcome with scanning a pleathora of stocks. I really like the advantages, bigger posisiton size, plus less risk of false breakout since pullback to breakout line is on contracting volume.

You think this is possible scan to do? I guess we would need to start creating a list of "known" stocks that have broken out (triply confirmed) and have a scan check the behavior for the next 1 to 3 months. When price gets back to x% from breakout line, calculate average vol for red candles and compare to previous green candles after breakout.

Yep.. thinking when I'm tired makes me think outside the "box"

Regards,

Patrick

AZ.TO - I've been watching this miner for a while, after playing it's initial continuation breakout at the start of the year. For the last three months it's formed a very tight range, and is once again trading near to a recent swing high. So is one I'm watching very closely for a breakout attempt.