This question is on the pullback method..
I've attached the FTSE350 sector beverages, after going through potentials and then went to an individual stock within the sector..and came up with Sab which is looking identical to the sector, falling relative strength compared to FTSE350 (spx would be the same if not worse)
If my analysis is correct beverages, and Sab have broken down into stage 4 and is now at the pullback stage, on declining volume compared to the breakdown which is all per the book. The stage 3 has lasted for exactly a year, so a nice topping period, but with no topping pattern.
so if everything is as I think, we should be looking for our low risk entry...and this is where the book doesn't really expand upon.
Is there anything that we would look for, possibly on the daily chart? Do we wait for the angle of the 10 to move down.
any advice on this setup..does look like a classic one
I've also attached the daily, which looks like a stage 1 so would a similar approach to the weekly method be the best bet?
thanks all
