[isatrader]

Are your screens focusing on Stage 2 continuation breakout? If we're looking for an early Stage 2A we'd screen for stage one right?

I'm looking for an entry in TSM and it looks like it's breaking resistance and volume looks good on two hour chart but Relative Strength line is pointing downwards. I'm I missing something? Thanks

Looking at IBD the average volume is -11% so I guess I answered my own question I would wait until the volume increased?

My screens look for multiple things. So they cover stocks in Stages 1 and 2. But they all focus on strong relative strength and rising moving averages etc. I've found when looking for early entries points, like Stage 2A, that sometimes its easiest to just go through all the charts in a particular group that you are focusing on visually. As sector themes can be one of the strongest indicators that a Stage 2A breakout will work. As if multiple stocks in the same group are all shaping up in the same way, and ready to breakout or already breaking out into Stage 2 on increased volume across the group. Then it's a good sign that the Stage 2 advance will succeed.

TSM is in a reasonably good position, but volume has only remained around average this week as many stocks have been exploding higher. So although technically in good shape. It's not showing strong demand as yet. Although that may come in if it attempts to breakout next week to new highs. But you want to see at least a 50% increase in daily volume on a breakout, but ideally 2 or 3 times at least. So 100% or more than the 50 day average volume. As that increased demand is what will drive a stock higher for more than just a day or two.