[isatrader]

Hello Isa,

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!  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.