RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
(2021-06-12, 10:26 AM)isatrader Wrote:This is an interesting chart. Not sure if I'm going a little off topic - or whether this example is atypical. However, if I got in on a continuation at 700 then getting out at 750 (A) the 50 day SMA, would get a profit of 7%. Waiting for B would get you out at about 650, probably a little lower, minus 7% assuming that you ignored the intraday fluctuations and only sold based on the close. The 200 day sell would be around 580 minus 17%. I appreciate this may not be the best example of a continuation with not very good volume. However it would seem that you might need to be quicker to sell if going for this sort of opening? Perhaps better continuations perform better? Also, if you are going to sell at a 7% profit you need to ensure you have costs under control.(2021-06-12, 07:01 AM)JimStudent Wrote: I was surprised listening to Stan's Interview that he had moved to the 200 Day Moving Average instead of the 150 Da Moving Average. I am rearranging the charts I have. And, I would love to listen to the Financial Series interviews. I think I have only heard one of them.
It's been the case for a long time, i.e he talked about it in the Heretics of Finance book interview that he sells at partials of the 50 day, 150 day and 200 day MAs. Which is why I have the daily chart set up (see attached) that way already and from the global trend alerts. Doesn't mean you have to change anything per se. As the daily chart is already using that.
If you wanted to adjust your weekly chart, you'd need to use a 40 week MA, but does make seeing the stages harder imo. So I think only adjust your daily chart if youare not already using the 50 day MA and 200 day MA on that.