RE: Beginners Questions
(2014-02-17, 07:37 PM)isatrader Wrote:(2014-02-17, 07:29 PM)malaguti Wrote: Funnily enough I'm doing exactly the same thing, in fact what I'm putting together is a rating score, given that not all trades are equal. bonus points for the higher time frame for example, and a rating depending on which stage the sector may be in..
anyway, to your question (and my interpretation could be wrong) but he does state that although the pullback to the breakout point is the least riskiest entry and where you would add to your second half, its not always the case that it will indeed pullback. so in those circumstances, rather than chasing the trade (another of his don'ts) you would use the continuation setup
That's what I took out of that anyway
Good luck Malcolm
A scoring system that I came up with that might help you. I call it SATA (Stage Analysis Technical Attributes):
StageAnalysis Technical Attributes - SATA
Basically, you give a score for each point and it's very useful to determine the stage a stock is in. I've included it with all the examples from Weinstein's global trend alert in the elite section, but a rough guide is that Stage 2A is generally in the 7 to 9 score range with a weighting towards 9. Stage 1B had scores in the 5 to 8 range, with a weighting towards the 8 side of that range, and Stage 1 had scores in the 5 to 8 range with a weighting towards 7. Whereas Stage 1A had scores in the 4 to 7 range with a weighting towards a score of 5. So that should give you the gist as obviously Stage 1 and 3 will be in the middle of the range with slight bias to either side, and Stage 2 will be at the upper end, and Stage 4 at the bottom end of the scale.
- 10 Week Simple MA Rising
- 30 Week Weighted MA Rising
- 30 Week Simple MA Rising
- 52 Week Mansfield Relative Performance above Zero Line
- Relative Performance 30 Week Weighted Moving Average Rising
- Force Index Cumulative Volume above 9 Week MA (on a buy signal)
- Force Index Cumulative Volume 9 Week MA Rising
- Weekly MACD above Zero
- Price Greater than the Kijun Line (part of the "Ichimoku Kinko Hyo" method, which focuses on dynamic support and resistance zones.)
I'm intrigued by rule 9 of your SATA scoring, "Price Greater than the Kijun Line (part of the "Ichimoku Kinko Hyo" method, which focuses on dynamic support and resistance zones.)". Don't remember seeing it in Weinstein's book, guess I'll have to do some google searching.