(This post was last modified: 2021-02-03, 04:36 PM by miche.)
RE: Stage Analysis Beginners Questions
(2021-02-03, 09:09 AM)pid=\17245 Wrote:Ok that's right many of these stocks are already in stage 2 and we're buying the consolidation breakout. So I'm checking out the volume this morning for VFF and APHA and it looks great over 200%. I can see the APHA is over extended and I'd wait for a pullback to the breakout level or breakout after new consolidation. For entry to VFF it's pulling back slightly today that could change so would I aim for until it trades below the first day close and then buy once it is able to reclaim that first-day close price 13.80? What would I look for on the 15min or 2hr chart? Thanks
(2021-02-03, 06:17 AM)miche Wrote: Cheers! Thanks I forgot to add an alert to this one. That's a nice feature from IBD - I have to start using it. I noticed VFF is on today's watchlist it's already broken out at 11.89% over 100% volume on IBD confused to why it's on the list since it already broke out?
The list isn't just breakouts, and stocks can provide many opportunities to get in. A big part of Weinstein's method, that's often ignored is pullback buys to the breakout level, and stocks already in Stage 2. So even if you have missed a breakout entry point, if a stock is showing the right characteristics then it should be on your watchlist for a potential pullback entry point to form.