[isatrader]

Here's one to watch possibly, chart for Anglo American and its sector
Sector is in stage 1 and about to break out, and Anglo is forming a double bottom with rising volume. Three negatives: the relative strength to the FTSE100 is positive, but not that strong and there is further resistance above, giving a 1:1 risk/reward and lastly the P&F chart is showing a firm downtrend..as does the monthly in stage 4
however, according to the book, only the resistance would be a factor as well as the RS rising and showing more strength.
I'd like the RS to increase slightly and begin rising and I may use this as a first one to watch and see. Certainly not the best.
As an early voyeur to this method, I can see that there will be many many more opportunities than P&F which could test the patience of a saint sometimes

Good stuff malaguti, it's definitely a sector to watch currently as for example the basic material stocks in the US broke out this week and are now the strongest they've been for the last few years. See attached sector percentage of stocks above their 150 day MAs chart below which I posted in the market breadth extra thread earlier.

   

One thing I'd suggest to adjust on your charts if you can, is the addition of the 52 week MA on the relative performance indicator, as this is what I refer to as the "zero line" as it's what's used for the Mansfield RS zero line, which you can see in the examples in the book. It's very important to have this, as I've found the angle of the relative performance 52 week MA is very important in determining whether a Stage 2A breakout will be successful or not i.e. the strongest breakouts occur when the relative performance line breaks above a flattening or rising 52 week MA (zero line), and I also recently emailed Stan about it, and he confirmed what I thought. So I'd recommend that you include it as I think it's an important component of the method.

For a full explanation of how to create the relative performance indicator go to: http://stageanalysis.net/reference/how-t...icator/558