[marry123]

Thanks Isa.  Could you please clarify the part about buying high and selling higher  as in Weinstein's book he has examples of buying stocks that have had large declines after they break from proper bases (eg page 33 Bethlehem Steel which fell from 22 to around 5 and was then a buy at just over 9 based on it breaking above its resistance of its stage 1 base). So would  a break above 9 not be a proper buy point for CRON breaking out of the stage 1 base? CRON actually looks very similar to Bethlehem steel unless I am mistaken (with similar drops from around 22).

Hi marry, it's on page 1 of the book.

As for CRON if you are comparing to the Bethlehem Steel example, then it's only just entered the left hand side of the shaded area in the example, and remember they are weekly charts. So the shaded area on the chart showed approximately an additional four months of basing in Stage 1 from this point before it broke out, and hence the reason why it needs much more time to form the Stage 1 base. As the base hasn't formed yet. It's literary only just starting to form. and when you've had large declines over a long period the bases tend to need longer as well. So if it follows the Bethlehem Steel pattern then a future breakout above 9 might be the breakout level. However today's swing high may be the start of a lower range, and so the high of that, which is 8.13 would become the top of the Stage 1 range.

Attached is a rough example of what would need to happen to roughly mimic the Bethlehem Steel chart in the book.

Thanks, Isa. As always, I very much appreciate your keen eye and experience!