[isatrader]

What is frustrating is that many of the tech stocks, like SHOP, had no proper bases form after they collapsed into March (and they fell below their 30 MA on the weekly) but then just ripped higher, many of them up 100% from end of March. They were just V rallies so if one was following the stage analysis method I guess one would have missed out on all these tech stocks if forming a proper base before buying a breakout is a key prerequisite for entry long? When would one have known to go long SHOP after it crashed in March and why would one have bought it if stocks should form proper bases, as you noted, of a year or more?

Thanks for your thoughts.

SHOP was already in Stage 2, and gave many opportunities over the last year to get in. See attached chart for a few. And so because the fall below the 30 week MA immediately reversed in March and didn't breach the investor stop loss position, SHOP remained in Stage 2. Although, it would have been give a preliminary Stage 3A rating, that it might be entering Stage 3. But as often happens, that was discarded when it powered back to make a new Stage 2 continuation breakout. The first sign of which would have been the double bottom pattern breakout on 14th April, as it was proving that it still had strength. So that was you entry point recently. But as an investor it was over year ago.

As I added SHOP to the watchlist about a month after its Stage 2 breakout last year here https://www.stageanalysis.net/forum/Thre...5#pid13545 So there was good opportunities to buy following that, especially the continuation breakout from the flat base pattern in April 2019 which I've highlighted on the attached chart.

I also highlighted numerous other times later in the year after the first significant pullback was completing here on 26th Nov: https://www.stageanalysis.net/blog/8836/...ember-2019 and then again on Dec 4th https://www.stageanalysis.net/blog/9438/...ember-2019

So as you can see, there were many chances with good risk reward to get in. But when markets get volatile like they have recently, then it becomes more of a traders market, and so investors would hold onto their strongest stocks like SHOP, and sell off their weakest. Whereas Traders would be looking for opportunities both long and short, as Stage 4 in the market brings huge volatility. Which is brilliant for short term trading.