RE: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis
(2021-06-12, 12:48 PM)pcabc 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.
They are Investor method exit points. Trader method has always been get out much quicker and to sell into strength. Mostly at the 50 day MA break or valid trend line break (3 touch points) or even earlier on sign of a buying climax or market weakness.
Also where you highlighted is not an entry point for either of the Stage Analysis methods, as only a minor continuation with no base. The entry point for TSLA would have been on the 18th Nov for the trader method. So would have been between 50% to 90% trade depending on how you exited.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.